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U.S. Dollar Attempts To Rebound As Traders React To Trump’s Comments In Davos: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD settled near the 1.1700 level as traders focused on geopolitical developments.
- USD/CAD tested new lows amid rising demand for commodity-related currencies.
- USD/JPY continued its attempts to settle above the resistance at 158.00 - 158.50.
U.S. Dollar Moves Higher As Trump Speaks In Davos
U.S. Dollar Index attempts to rebound as traders react to Donald Trump’s comments in Davos. U.S. President said that he wanted immediate negotiations on Greenland.
In case U.S. Dollar Index stays above the 98.50 level, it will head towards the nearest resistance, which is located in the 98.85 – 99.00 range.
EUR/USD Pulls Back Amid Profit-Taking
EUR/USD made an attempt to settle above the resistance at 1.1715 – 1.1730 but lost momentum and pulled back.
In case EUR/USD settles below the 1.1700 level, it will head towards the 50 MA at 1.1654.
GBP/USD Is Mostly Flat As UK Inflation Rate Jumps To 3.4%
GBP/USD is swinging between gains and losses as traders react to inflation data from the UK. Inflation Rate increased from 3.2% in November to 3.4% in December, compared to analyst forecast of 3.3%. Core Inflation Rate remained unchanged at 3.2%, in line with analyst expectations.
A move below the 50 MA at 1.3428 will push GBP/USD towards the support level at 1.3360 – 1.3375.
USD/CAD Remains Under Pressure
USD/CAD tested new lows as traders focused on the rally in gold markets. Other commodity-related currencies have also moved higher in today’s trading session.
Currently, USD/CAD is trying to settle below the support at 1.3815 – 1.3830. In case this attempt is successful, USD/CAD will move towards the next support level, which is located in the 1.3735 – 1.3750 range.
USD/JPY Attempts To Settle Above 158.00
USD/JPY remains stuck near the resistance at 158.00 – 158.50 as traders monitor Japan’s bond markets. Traders have calmed down, and yields moved away from multi-decade highs. However, worries about Japan’s finances continue to put pressure on the Japanese yen.
If USD/JPY settles above the 158.50 level, it will head towards the resistance level at 161.50 – 162.00.
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About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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