EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Swings Between Gains And Losses In Choppy Trading

Key Insights

• EUR/USD gained some ground as traders focused on the inflation data from France. 
• USD/CAD moved above the 1.3600 level after the release of GDP reports from Canada. 
• USD/JPY tested new highs as traders bet on rising interest rates in the U.S. 

U.S. Dollar

U.S. Dollar Index rebounded from session lows after an unsuccessful attempt to settle below the 104.50 level.

Today, traders focused on the economic data from the U.S. Case-Shiller Home Price index declined by 0.9% month-over-month in December as high interest rates weighed on home prices. CB Consumer Confidence and Chicago PMI reports have also missed analyst expectations.

In the near term, the key question is whether the yields of 10-year Treasuries and 30-year Treasuries settle above the psychologically important 4.00% level. A move above this level will likely provide material support to the American currency.

EUR/USD

EUR/USD moved above the 1.0600 level as traders reacted to the inflation data from France. Inflation Rate increased from 6% in January to 6.2% in February, compared to analyst consensus of 6.1%. Prices continue to move higher, so ECB will likely be forced to raise rates aggressively.

GBP/USD

GBP/USD is currently trying to settle above the 50 EMA as the rebound continues. In case this attempt is successful, GBP/USD will gain additional upside momentum and move towards the next resistance level, which is located at 1.2150.

USD/CAD

USD/CAD moved above the 1.3600 level after the release of economic data from Canada. GDP Growth Rate was 0% in the fourth quarter, compared to analyst consensus of 0.4%. However, GDP increased by 0.3% month-over-month in January. Interestingly, the strong rebound in the oil markets did not provide support to the Canadian dollar.

Other commodity-related currencies were moving higher in today’s trading session. AUD/USD moved above the 0.6750 level, while NZD/USD settled near 0.6200.

USD/JPY

USD/JPY tested new highs near the 137 level but lost momentum and pulled back. The difference betwee the Fed policy and the BoJ policy remains the key driver for USD/JPY.

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