U.S. Dollar Rebounds From Session Lows As Trump Says He Does Not Plan To Fire Powell: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Volatile As Traders Worry About Fed Independence

U.S. Dollar Index found itself under strong pressure amid reports indicating that President Donald Trump could fire Powell. However, U.S. Dollar Index rebounded from session lows after Trump said that he was “not planning on doing anything”.

In case U.S. Dollar Index manages to settle back above the 98.70 level, it will head towards the nearest resistance at 99.20 – 99.40.

EUR/USD Gains Ground As Traders Focus On Powell’s Fate

EUR/USD has also reacted to recent reports and Trump’s comments. Worries about Fed’s independence are bullish for EUR/USD.

A move above the 1.1650 level will lead to the test of the resistance level at 1.1675 – 1.1690.

GBP/USD Rebounds As Traders React To Inflation Data From The UK

GBP/USD moved away from the support at 1.3370 – 1.3390 as traders monitored reports about Powell’s potential removal. Today, traders also focused on inflation data from the UK. Inflation Rate increased from 3.4% in May to 3.6% in June, compared to analyst forecast of 3.4%. Core Inflation Rate grew from 3.5% to 3.7%.

If GBP/USD manages to settle above the 1.3450 level, it will head towards the nearest resistance level, which is located in the 1.3500 – 1.3520 range.

USD/CAD Made An Attempt To Settle Above 1.3750

USD/CAD tested resistance at 1.3735 – 1.3750 but lost momentum and pulled back. Rising precious metals markets may provide additional support to Canadian dollar.

If USD/CAD declines below the 50 MA at 1.3678, it will move towards the support level at 1.3650 – 1.3665.

USD/JPY Is Losing Ground As Treasury Yields Fall

USD/JPY tested support at 147.50 – 148.00 as traders reacted to the pullback in Treasury yields.

In case USD/JPY settles below the 147.50 level, it will get to the test of the 50 MA at 146.80. A move below the 50 MA will push USD/JPY towards the next support level at 143.50 – 144.00.

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