U.S. Dollar Pulls Back Ahead Of Fed Decision: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Lower Ahead Of Fed Decision

U.S. Dollar Index is losing ground as traders prepare for Fed Interest Rate Decision. Fed is expected to cut the federal funds rate from 4.25% to 4.0%. Traders should note that Powell’s press conference will likely have a material impact on market dynamics.

A move below the 98.50 level will open the way to the test of the nearest support level at 98.00 – 98.20.

EUR/USD Attempts To Settle Back Above 1.1650

EUR/USD climbed back above the 1.1650 level as traders focused on the upcoming Fed decision.

If EUR/USD stays above 1.1650, it will head towards the resistance at 1.1685 – 1.1700. A successful test of this level will push EUR/USD towards the next resistance level at 1.1765 – 1.1780.

GBP/USD Retreats As Traders Prepare For UK Budget

GBP/USD tested new lows as traders focused on the upcoming UK budget. Analysts expect that it will include tax rises and spending cuts, which would put additional pressure on UK economy.

In case GBP/USD manages to settle below the support at 1.3235 – 1.3250, it will head towards the next support level at 1.3145 – 1.3160.

USD/CAD Tests New Lows As BoC Cuts Rates

USD/CAD remains under pressure as traders react to BoC Interest Rate Decision. The Bank of Canada cut the rate from 2.50% to 2.25%, in line with analyst estimates.

If USD/CAD stays below the support level at 1.3910 – 1.3925, it will move towards the next support, which is located in the 1.3820 – 1.3835 range.

USD/JPY Is Flat As Traders Wait For Fed Interest Decision

USD/JPY is mostly flat as traders react to the better-than-expected Consumer Confidence report from Japan. The report indicated that Consumer Confidence improved from 35.3 in September to 35.8 in October, compared to analyst forecast of 35.6.

A move above the 153.00 level will open the way to the test of the nearest resistance level, which is located in the 154.50 – 155.00 range.

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