U.S. Dollar Moves Higher As GDP Growth Rate Beats Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Stays Strong As GDP Growth Rate Exceeds Analyst Estimates

U.S. Dollar Index is trying to gain upside momentum as traders react to the better-than-expected GDP Growth Rate report. The report showed that GDP Growth Rate was +2.2% in the second quarter, compared to analyst forecast of +1.5%.

Traders also focused on Personal Spending and Personal Income reports. Personal Spending increased by +0.9% month-over-month in August, compared to analyst consensus of +0.8%. Personal Income grew by +0.2%, compared to analyst consensus of +0.4%.

U.S. Dollar Index is moving towards the resistance level at 101.50 – 101.65. In case U.S. Dollar Index manages to settle above the 101.65 level, it will move towards the next resistance at 102.35 – 102.50. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

EUR/USD Tests Support At 1.1335 – 1.1350

EUR/USD is mostly flat as traders focus on inflation data from Germany. Inflation Rate increased from 2.9% in August to 3.3% in September, compared to analyst consensus of 3.2%.

Germany’s Retail Sales decreased by -0.4% year-over-year in August, while analysts expected that they would grow by +0.1%.

EUR/USD continues its attempts to settle below the support level at 1.1335 – 1.1350. If EUR/USD manages to settle below the 1.1335 level, it will move towards the next support level, which is located in the 1.1250 – 1.1265 range.

GBP/USD Tests Resistance At 1.3285 – 1.3300

GBP/USD gained ground as traders bet that the new UK budget, which will be presented in October, will provide fiscal discipline.

From the technical point of view, GBP/USD made an attempt to settle above the resistance level at 1.3285 – 1.3300 but lost momentum and pulled back. If GBP/USD manages to settle above the 1.3300 level, it will head towards the next resistance at 1.3400 – 1.3415.

USD/CAD Moves Higher As Rally Continues

USD/CAD tests new highs as traders react to the pullback in precious metals markets. Other commodity-related currencies are also losing ground in today’s trading session.

If USD/CAD stays above the 1.4200 level, it will head towards the nearest resistance, which is located in the 1.4235 – 1.4250 range. A move above the 1.4250 level will push USD/CAD towards the 1.4300 level.

USD/JPY Rebounds From Session Lows As Treasury Yields Rise

USD/JPY gained some ground as traders reacted to weaker-than-expected economic reports from Japan.

Japan’s Retail Sales increased by +2.7% year-over-year in August, compared to analyst forecast of +3.3%. Industrial Production decreased by -1.7% month-over-month in August, while analysts expected that it would grow by +1.7%.

Traders also focused on dynamics of debt markets. The yield of 30-year Treasuries tested new highs, climbing above the 5.64% level. The yield of 10-year Treasuries moved above the 5.28% level.

The technical picture remains unchanged as USD/JPY is stuck below the 50 MA at 157.56. If USD/JPY moves above the 50 MA, it will head towards the nearest resistance level at 158.00 – 158.50. A successful test of this level will push USD/JPY towards the next resistance at 160.00 – 160.50.

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