U.S. Dollar Rebounds As Bessent Says U.S. Has A Strong Dollar Policy: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Traders Prepare For Fed Decision

U.S. Dollar Index rebounds ahead of the Fed Interest Rate Decision, which will be released soon. Analysts expect that Fed will leave rates unchanged. Today, Treasury Secretary Scott Bessent said that the U.S. always had a strong dollar policy. His verbal intervention provided additional support to the American currency.

Currently, U.S. Dollar Index is trying to settle above the resistance at 96.35 – 96.50. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance level, which is located in the 97.10 – 97.25 range.

EUR/USD Retreats Amid Profit-Taking

EUR/USD is under pressure as traders take profits after the strong rally. Today, traders also focused on GfK Consumer Confidence report from Germany. The report showed that Consumer Confidence decreased from -26.9 in January to -24.1 in February, compared to analyst forecast of -25.8.

In case EUR/USD manages to settle below the support at 1.1900 – 1.1915, it will move towards the next support level, which is located in the 1.1835 – 1.1850 range.

GBP/USD Pulled Back From Yearly Highs

GBP/USD is moving lower as traders prepare for Fed decision and take some profits off the table.

The nearest support level for GBP/USD is located in the 1.3710 – 1.3725 range. A move below the 1.3710 level will open the way to the test of the support at 1.3570 – 1.3585.

USD/CAD Gains Ground As BoC Leaves Rates Unchanged

USD/CAD attempts to rebound as traders react to BoC Interest Rate Decision. BoC left the interest rate unchanged at 2.25%, in line with analyst estimates.

In case USD/CAD manages to settle back above the support at 1.3575 – 1.3590, it will move towards the resistance at 1.3650 – 1.3665.

USD/JPY Rebounds After Major Pullback

USD/JPY gains ground as Bessent said that U.S. did not intervene to sell dollar against the yen.

From the technical point of view, USD/JPY is moving towards the nearest resistance, which is located in the 154.50 – 155.00 range.

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