U.S. Dollar Rebounds As Treasury Yields Rise: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Attempts To Settle Above 98.50

U.S. Dollar Index gains ground as traders focus on rising Treasury yields. The yield of 2-year Treasuries rebounded towards the 3.50% level, while the yield of 10-year Treasuries moved towards 4.19%.

The nearest resistance level for U.S. Dollar Index is located in the 98.85 – 99.00 range. A move above the 99.00 level will push U.S. Dollar Index towards the next resistance at 100.25 – 100.40.

EUR/USD Retreats As Germany’s Inflation Rate Drops To 1.8%

EUR/USD pulled back as traders reacted to inflation data from Germany. Inflation Rate declined from 2.3% in November to 1.8% in December, compared to analyst forecast of 2%. The lower-than-expected report highlighted the slowdown of Germany’s economy.

In case EUR/USD stays below the 1.1700 level, it will head towards recent lows near 1.1660. A move below 1.1660 will open the way to the test of the support at 1.1615 – 1.1630.

GBP/USD Pulls Back From Multi-Week Highs

GBP/USD failed to settle above the 1.3550 level and pulled back towards the support at 1.3475 – 1.3490.

If GBP/USD declines below the 1.3475 level, it will head towards the next support at 1.3360 – 1.3375.

USD/CAD Moves Higher As Traders Ignore The Rally In Precious Metals Markets

USD/CAD gained ground despite the strong rally in precious metals markets. Other commodity-related currencies were mixed in today’s trading session.

A successful test of the resistance at 1.3815 – 1.3830 will open the way to the test of the next resistance level at 1.3890 – 1.3900.

USD/JPY Gains Ground As Treasury Yields Rise

USD/JPY moved higher, supported by rising Treasury yields. Currently, USD/JPY is trying to settle above the 156.50 level.

In case this attempt is successful, USD/JPY will head towards the next resistance, which is located in the 158.00 – 158.50 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

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