EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rebounds From Session Lows As Traders Digest Inflation Data

Key Insights

• EUR/USD faced resistance at 1.1065 and pulled back towards the 1.1000 level. 
• GBP/USD settled near the 1.2700 level. 
• USD/JPY tested new highs near the 144.50 level. 

U.S. Dollar

U.S. Dollar Index rebounded from session lows as traders digested U.S. inflation data. Treasury yields have started to move higher, providing support to the American currency.

The recent attempt to settle below the support at 102.00 – 102.15 was not successful, so the U.S. Dollar Index may gain additional upside momentum and move closer to the recent highs near the 102.85 level.

EUR/USD

EUR/USD moved away from session highs as traders focused on U.S. inflation data.

In case EUR/USD declines below the 200 MA at 1.1025, it will head towards the next support level, which is located in the 1.0950 – 1.0975 range.

GBP/USD

GBP/USD lost momentum and moved back towards the support at 1.2725 – 1.2750. There are no important economic reports scheduled to be released in the UK today, so traders will stay focused on general market sentiment.

In case GBP/USD manages to settle below the 1.2725 level, it will gain additional downside momentum and move towards the next support at 1.2590 – 1.2620.

USD/CAD

USD/CAD is mostly flat as oil pulls back from recent highs. Other commodity-related currencies have also found themselves under pressure in recent hours.

The nearest resistance level for USD/CAD is located at 1.3430 – 1.3450. A move above 1.3450 will open the way to the test of the next resistance at 1.3500 – 1.3520.

USD/JPY

USD/JPY tests new highs as traders remain focused on the ultra-dovish policy of the BoJ.

USD/JPY is already close to the key resistance at 144.65 – 145.00. It remains to be seen whether USD/JPY will be able to settle above the 145 level without a pullback as RSI has already entered into the overbought territory.

For a look at all of today’s economic events, check out our economic calendar.