U.S. Dollar Gains Ground As Traders Focus On Trump’s Fed Chair Pick
U.S. Dollar Index continues to rebound as traders react to Producer Prices report for December. PPI increased by +0.5% month-over-month, compared to analyst forecast of +0.2%. Core PPI grew by +0.7%, while analysts expected that it would increase by +0.2%. Traders also reacted to Trump’s decision to nominate Kevin Warsh to be the next Fed Chair.
In case U.S. Dollar Index stays above the resistance at 96.35 – 96.50, it will move towards the next resistance level, which is located in the 97.10 – 97.25 range.
EUR/USD Moves Lower As Pullback Continues
EUR/USD retreats despite the stronger-than-expected Euro Area GDP Growth Rate report. The report showed that GDP Growth Rate was +0.3% in the fourth quarter, compared to analyst forecast of +0.2%.
A successful test of the support at 1.1900 – 1.1915 will open the way to the test of the next support level at 1.1835 – 1.1850.
GBP/USD Tests Support At 1.3710 – 1.3730
GBP/USD is moving lower as traders continue to take profits after the strong rally and react to economic news from the U.S.
Currently, GBP/USD is trying to settle below the support at 1.3710 – 1.3725. In case this attempt is successful, GBP/USD will move towards the 50 MA at 1.3634.
EUR/USD Price Forecast
Every new EUR/USD analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all EUR/USD forecastsUSD/CAD Rebounds As Silver Dives 15%
USD/CAD gains ground as traders react to the major sell-off in precious metals markets. Silver is down by as much as 15% as traders rush to exit their long positions.
In case USD/CAD settles above the 1.3550 level, it will get to the test of the nearest resistance at 1.3575 – 1.3590.
USD/JPY Tests Resistance At 154.50 – 155.00
USD/JPY attempts to settle above the resistance at 154.50 – 155.00 as traders focus on the weak Retail Sales report from Japan. The report indicated that Retail Sales decreased by -0.9% year-over-year in December, compared to analyst forecast of +0.7%.
A move above the 155.00 level will push USD/JPY towards the resistance level at 158.00 – 158.50.
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