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U.S. Dollar Gains Ground As Rebound Continues: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- GBP/USD was swinging between gains and losses as traders focused on UK Retail Sales data.
- USD/CAD made an attempt to settle above the 1.3800 level.
- USD/JPY rallied as BoJ raised the interest rate from 0.5% to 0.75%.
U.S. Dollar Index Attempts To Settle Above 98.50
U.S. Dollar Index gains ground as traders react to the final reading of Michigan Consumer Sentiment report. The report indicated that Michigan Consumer Sentiment increased from 51.0 in November to 52.9 in December, compared to analyst forecast of 53.4.
If U.S. Dollar Index stays above the 98.50 level, it will head towards the nearest resistance at 98.85 – 99.00.
EUR/USD Is Stuck Near Support At 1.1715-1.1730
EUR/USD is mostly flat as traders focus on Germany’s Producer Prices report. The report showed that PPI declined by -2.3% year-over-year, compared to analyst forecast of -2.2%.
A successful test of the support at 1.1715 – 1.1730 will open the way to the test of the next support level, which is located in the 1.1615 – 1.1630 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside mometnum in the near term.
GBP/USD Is Flat As Traders React To UK Retail Sales Report
GBP/USD is stuck near the resistance at 1.3360 – 1.3375 as traders focus on UK Retail Sales report. The report indicated that UK Retail Sales decreased by -0.1% month-over-month in November, compared to analyst consensus of +0.4%.
In case GBP/USD pulls back below the 1.3360 level, it will head towards the support at 1.3250 – 1.3265.
USD/CAD Moves Higher As Traders Ignore The Rally In Precious Metals Markets
USD/CAD gained some ground despite rising commodity markets. Other commodity-related currencies were mixed in today’s trading session.
From the technical point of view, USD/CAD needs to settle above the resistance at 1.3815 – 1.3830 to gain additional upside momentum in the near term.
USD/JPY Soars As Traders Focus On BoJ Decision
USD/JPY rallied as traders reacted to BoJ Interest Rate Decision. BoJ raised the rate from 0.5% to 0.75%, in line with analyst estimates. It looks that traders expected hawkish comments from BoJ, but Ueda was rather neutral.
A move above the resistance at 158.00 – 158.50 will push USD/JPY towards the psychologically important 160.00 level.
For a look at all of today’s economic events, check out our economic calendar.
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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