U.S. Dollar Rebounds From Session Lows As Traders Focus On Strong Economy: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Stays Stuck Near The 99.00 Level

U.S. Dollar Index remains stuck near the resistance level at 98.85 – 99.00 as traders focus on CPI data. Inflation Rate increased from 2.9% in August to 3.0% in September, compared to analyst forecast of 3.1%. Core Inflation Rate declined from 3.1% to 3.0%, while analysts expected that it would remain unchanged. However, strong PMI reports provided sufficient support to the American currency, which managed to rebound from session lows.

In case U.S. Dollar Index manages to settle above the 99.00 level, it will move towards the next resistance at 100.00 – 100.15.

EUR/USD Moves Higher As Traders React To PMI Reports

EUR/USD gained some ground as traders focused on the better-than-expected Euro Area Composite PMI report. The report indicated that Composite PMI increased from 51.2 in September to 52.2 in October, compared to analyst forecast of 51.

If EUR/USD climbs above the 50 MA at 1.1633, it will head towards the resistance at 1.1685 – 1.1700.

GBP/USD Tests New Lows

GBP/USD retreats despite the better-than-expected UK Services PMI report, which showed that UK Services PMI increased from 50.8 in September to 51.1 in October.

A move below the support at 1.3330 – 1.3350 opens the way to the test of the next support level, which is located in the 1.3235 – 1.3250 range.

USD/CAD Failed To Settle Above The 50 MA

USD/CAD made an attempt to settle above the 50 MA at 1.4026 but lost momentum and pulled back.

In case USD/CAD declines below the 1.4000 level, it will head towards the next support at 1.3910 – 1.3925.

USD/JPY Gains Ground As Japan’s PMI Reports Miss Estimates

USD/JPY is moving higher as traders react to the weaker-than-expected PMI reports from Japan. Services PMi decreased from 53.3 in September to 52.4 in October, while Manufacturing PMI declined from 48.5 to 48.3. Numbers below 50 show contraction.

In case USD/JPY climbs above the 153.00 level, it will head towards the resistance level at 154.50 – 155.00.

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