GBP/USD Tries To Settle Above The 1.2300 Level

Key Insights

• U.S. dollar is mostly flat despite bullish PPI and Consumer Sentiment reports. 
• GBP/USD managed to gain upside momentum ahead of the weekend. 
• EUR/USD pulled back below the 1.0500 level. 

U.S. Dollar Is Mostly Flat Ahead Of The Weekend

U.S. Dollar Index made an attempt to settle above the 105 level after the release of Consumer Sentiment data but lost momentum and pulled back towards 104.85.

Treasury yields are moving higher, but this move does not provide sufficient support to the American currency.

Interestingly, higher-than-expected PPI reports also failed to push the U.S. dollar to higher levels.

EUR/USD Faced Resistance Near 1.0600

EUR/USD made an attempt to settle above the 1.0600 level but lost momentum and pulled back below 1.0550.

The nearest support level for EUR/USD is located at 1.0500. In case EUR/USD declines below this level, it will move towards the next support at 1.0440. If EUR/USD manages to settle below 1.0440, it will head towards the support at 1.0400.

On the upside, EUR/USD needs to get back above 1.0550 to have a chance to gain upside momentum in the near term. The next resistance level for EUR/USD is located at 1.0600. If EUR/USD settles above this level, it will head towards the resistance at 1.0630. A successful test of the resistance at 1.0630 will push EUR/USD towards the resistance at 1.0660.

GBP/USD Tests Resistance At 1.2300

GBP/USD managed to get above the 1.2300 level and is moving towards recent highs.

Traders’ risk appetite continues to grow, which is bullish for GBP/USD. In case GBP/USD settles above 1.2300, it will move towards the next resistance level, which is located at 1.2335.

AUD/USD Gains Ground As Commodity Markets Stay Strong

AUD/USD moved above the 0.6800 level as commodity markets continued to rebound.

Strong commodity markets have also provided support to NZD/USD, which managed to settle above the 0.6400 level.

Meanwhile, USD/CAD settled near 1.3620 after an unsuccessful attempt to climb above the resistance at 1.3685.

USD/JPY Tried To Settle Below The 136 Level

USD/JPY made an attempt to settle below the 136 level but lost momentum and rebounded closer to 136.50. A move above this level will open the way to the test of the key resistance at 137.50. It should be noted that there are no specific catalysts for USD/JPY today, so it remains to be seen whether it will be able to gain additional momentum.

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