U.S. Dollar Retreats Ahead Of Fed Decision: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Moving Lower As Traders Wait For Fed Decision

U.S. Dollar Index is losing ground ahead of Fed decision, which will be released soon. Analysts expect that Fed will keep rates unchanged, so traders will focus on Powell’s comments. Importantly, Fed will also release FOMC Economic Projections, which may have a material impact on forex markets.

In case U.S. Dollar Index settles back below the 50 MA at 98.56, it will head towards the support level, which is located in the 98.00 – 98.20 range.

EUR/USD Rebounded Above 1.1500

EUR/USD gains ground as traders prepare for Fed decision. Currently, EUR/USD is trying to settle above the 1.1500 level.

In case this attempt is successful, EUR/USD will move towards the next resistance, which is located in the 1.1685 – 1.1700 range.

GBP/USD Gains Ground As Traders Focus On UK Inflation Data

GBP/USD moved higher as traders reacted to inflation data from the UK. Inflation Rate decreased from 3.5% in April to 3.4% in May, in line with analyst estimates. Core Inflation Rate declined from 3.8% to 3.5%, compared to analyst forecast of 3.6%.

If GBP/USD moves above the 1.3500 level, it will get to the test of the 50 MA at 1.3534.

USD/CAD Tests Resistance At 1.3650 – 1.3675

USD/CAD continues its attempts to settle above the resistance at 1.3650 – 1.3665 as traders monitor the wild swings in the oil market.

A move above the 1.3665 level opens the way to the test of the next resistance at 1.3725 – 1.3740.

USD/JPY Pulls Back As Treasury Yields Decline

USD/JPY is losing ground as traders focus on the pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 3.92% level, while the yield of 10-year Treasuries pulled back towards 4.35%.

A successful test of the nearest support level at 143.50 – 144.00 will push USD/JPY towards the support level at 140.00 – 140.50.

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