U.S. Dollar Is Losing Ground As Composite PMI Misses Expectations
U.S. Dollar Index retreats as traders react to S&P Global Composite PMI report, which indicated that Composite PMI declined from 55.4 in December to 52.4 in January, compared to analyst forecast of 55.3.
The nearest support level for U.S. Dollar Index is located in the 106.80 – 107.00 range. A move below the 106.80 level will push U.S. Dollar Index towards the next support at 105.50 – 105.70.
EUR/USD Rallied As Composite PMI Beat Estimates
EUR/USD gains ground as traders react to the better-than-expected Euro Area Composite PMI report. The report showed that Euro Area Composite PMI increased from 49.6 in December to 50.2 in January, compared to analyst forecast of 49.7. Numbers above 50 show expansion.
If EUR/USD manages to settle above the resistance at 1.0515 – 1.0530, it will move towards the next resistance level at 1.0630 – 1.0650.
GBP/USD Tests Resistance At 1.2485 – 1.2500
GBP/USD rallied, supported by the encouraging UK Manufacturing PMI and UK Services PMI reports. Both reports exceeded analyst expectations.
A successful test of the resistance at 1.2485 – 1.2500 will open the way to the test of the next resistance level at 1.2585 – 1.2600. RSI has recently moved into the overbought territory, so the risks of a pullback are increasing.
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See all EUR/USD forecastsUSD/CAD Is Stuck Near The 1.4350 Level
USD/CAD is stuck near the strong support at 1.4330 – 1.4350 as traders react to the New Housing Price Index report from Canada. The report indicated that New Housing Price Index declined by 0.1% month-over-month in December, compared to analyst forecast of +0.2%.
A move below the 1.4330 level will push USD/CAD towards the next support level, which is located in the 1.4100 – 1.4120 range.
USD/JPY Pulls Back After BoJ Raises Interest Rate To 0.5%
USD/JPY pulled back as traders reacted to BoJ Interest Rate Decision. The central bank raised the interest rate from 0.25% to 0.5%, in line with analyst estimates. Japan’s Inflation Rate increased from 2.9% in November to 3.6% in December, compared to analyst forecast of +3.2%.
If USD/JPY declines below the 155.00 level, it will move towards the support level at 153.50 – 154.00.
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