U.S. Dollar Moves Higher As Traders Focus On CPI Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher After CPI Report

U.S. Dollar Index gains ground as traders focus on CPI data. Inflation Rate remained unchanged at 2.7% in December, in line with analyst forecasts. Core Inflation Rate was unchanged at 2.6%, while analysts expected that it would increase to 2.7%. Interestingly, U.S. dollar moved higher as traders bet on a more hawkish Fed after DOJ probe.

Currently, U.S. Dollar Index is trying to settle above the nearest resistance at 98.85 – 99.00. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance level at 100.25 – 100.40.

EUR/USD Retreats As Traders Focus On U.S. Inflation Data

EUR/USD pulled back as traders reacted to U.S. inflation data and remained focused on Trump’s attempts to put more pressure on Powell.

A successful test of the support at 1.1615 – 1.1630 will open the way to the test of the next support level at 1.1500 – 1.1515.

GBP/USD Pulled Back Below 1.3450

GBP/USD failed to settle above the resistance level at 1.3475 – 1.3490 and pulled back towards the 1.3430 level.

If GBP/USD settles below 1.3430, it will move towards the next support level, which is located in the 1.3360 – 1.3375 range.

USD/CAD Tests Resistance At 1.3890 – 1.3905

USD/CAD is moving higher despite the rally in commodity markets. Other commodity-related currencies are also losing ground in today’s trading session.

A move above the resistance level at 1.3890 – 1.3905 will push USD/CAD towards the next resistance, which is located in the 1.3980 – 1.3995 range.

USD/JPY Climbed Above 159.00

USD/JPY tests new highs amid lack of positive catalysts for the Japanese yen. It remains to be seen whether BoJ will try to defend the yen near the 160.00 level.

If USD/JPY stays above the resistance at 158.00 – 158.50, it will move towards the next resistance level at 161.50 – 162.00.

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