U.S. Dollar Remains Under Pressure At The Start Of The Week: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back As Traders Bet On Dovish Fed

U.S. Dollar Index remains under pressure as traders react to the NAHB Housing Market index report. The report indicated that NAHB Housing Market Index increased from 38 in November to 39 in December, compared to analyst forecast of 38.

The nearest support level for U.S. Dollar Index is located in the 98.00 – 98.15 range. A move below the 98.00 level will push U.S. Dollar Index towards the next support at 97.35 – 97.50.

EUR/USD Tests New Highs

EUR/USD is moving higher as traders focus on the Euro Area Industrial Production report. The report showed that Industrial Production grew by +0.8% month-over-month in October, in line with analyst estimates.

In case EUR/USD stays above the 1.1750 level, it will head towards the nearest resistance level at 1.1805 – 1.1820.

GBP/USD Tested The 1.3400 Level

GBP/USD gains ground as traders focus on general weakness of the American currency. From a big picture point of view, traders remain focused on dovish Fed policy outlook.

A move above the 1.3400 level will open the way to the test of the resistance level at 1.3475 – 1.3490.

USD/CAD Stays Range-Bound

USD/CAD remains stuck in a tight range as traders react to inflation reports from Canada. Inflation Rate remained unchanged at 2.2% in November, compared to analyst forecast of 2.3%. Core Inflation Rate was unchanged at 2.9%.

If USD/CAD climbs above the 1.3780 level, it will head towards the resistance at 1.3815 – 1.3830.

USD/JPY Pulls Back As Treasury Yields Fall

USD/JPY attempts to settle below the support at 154.50 – 155.00 as traders focus on falling Treasury yields. The yield of 2-year Treasuries declined towards the 3.50% level, while the yield of 10-year Treasuries pulled back towards 4.15%.

If USD/JPY manages to settle below the 154.50 level, it will move towards the support level at 151.00 – 151.50.

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