U.S. Dollar Pulls Back As Trump Says Fed’s Cook Must Resign: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats Amid Worries About Fed’s Independence

U.S. Dollar Index pulled back as President Trump said that Fed Governor Lisa Cook must resign. Cook may be investigated for potential mortgage fraud. At this point, no charges have been filed.

The technical picture remains unchanged as U.S. Dollar Index is stuck near the resistance at 98.00 – 98.20. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

EUR/USD Rebounds Above 1.1650

EUR/USD gained some ground as traders reacted to Producer Prices report from Germany. The report showed that Germany’s PPI declined by -1.5% year-over-year in July, compared to analyst forecast of -1.3%.

The nearest resistance level for EUR/USD is located in the 1.1685 – 1.1700 range. If EUR/USD manages to settle above this level, it will head towards the next resistance, which is located in the 1.1800 – 1.1815 range.

GBP/USD Tests New Lows As UK Inflation Rate Rises To 3.8%

GBP/USD pulled back as traders reacted to inflation data from the UK. The report indicated that UK Inflation Rate increased from 3.6% in June to 3.8% in July, compared to analyst forecast of 3.7%.

If GBP/USD stays below the support at 1.3485 – 1.3500, it will move towards the next support level at 1.3400 – 1.3415.

USD/CAD Is Mostly Flat Amid Profit-Taking

USD/CAD moved away from recent highs as traders took some profits off the table after the rally. Other commodity-related currencies moved lower in today’s trading session.

The nearest support level for USD/CAD is located in the 1.3845 – 1.3860 range. A move below the 1.3845 level will push USD/CAD towards the 50 MA at 1.3797.

USD/JPY Is Losing Ground As Treasury Yields Fall

USD/JPY declined towards the 147.00 level as traders focused on the pullback in Treasury yields.

In case USD/JPY settles below 147.00, it will head towards the support at 143.00 – 143.50.

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