U.S. Dollar Pulls Back After Disappointing GDP Growth Rate Report
U.S. Dollar Index pulls back as traders focus on economic reports and react to geopolitical developments.
GDP Growth Rate was +0.5% in the fourth quarter, compared to analyst consensus of +0.7%.
Initial Jobless Claims report indicated that 219,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 210,000.
PCE Price Index increased by +0.4% month-over-month In February, in line with analyst estimates. Core PCE Price index has also increased by +0.4%.
Today, traders also had a chance to take a look at Personal Income and Personal Spending reports for February. Personal Income decreased by -0.1%, compared to analyst forecast of +0.3%. Personal Spending grew by +0.5%, in line with analyst estimates.
Traders also focused on developments in the Middle East. The Strait of Hormuz remains de-facto closed, but U.S. and Iran continue to prepare for negotiations in Islamabad.
Currently, U.S. Dollar Index is trying to settle below the support at 98.85 – 99.00 range. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 98.00 – 98.15 range.
EUR/USD Gains Ground Amid Rising Appetite For Risk
EUR/USD is moving higher despire the disappointing Industrial Production report from Germany. The report showed that Industrial Production decreased by -0.3% month-over-month in February, compared to analyst forecast of +0.9%.
From the technical point of view, EUR/USD attempts to settle above the resistance at 1.1665 – 1.1680. If EUR/USD manages to stay above the 1.1680 level, it will move towards the next resistance at 1.1765 – 1.1780.
EUR/USD Price Forecast
Every new EUR/USD analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all EUR/USD forecastsGBP/USD Is Moving Towards The Resistance At 1.3470 – 1.3485
GBP/USD is moving higher as demand for riskier assets is rising amid hopes for a peace deal in the Middle East.
A successful test of the resistance level at 1.3470 – 1.3485 will open the way to the test of the next resistance at 1.3570 – 1.3585. On the support side, a move below the 1.3400 level will push GBP/USD towards the support level at 1.3315 – 1.3330.
USD/CAD Tests Support At 1.3800 – 1.3815
USD/CAD is losing ground as traders focus on the rally in precious metals markets. Gold climbed towards the $4800 level, while silver settled above the $76.00 level. Other commodity-related currencies are also moving higher in today’s trading session.
Currently, USD/CAD is trying to settle below the support level at 1.3800 – 1.3815. If USD/CAD manages to settle below the 1.3800 level, it will move towards the next support, which is located in the 1.3700 – 1.3715 range.
USD/JPY Moves Higher As Japan’s Consumer Confidence Drops
USD/JPY gained some ground despite the pullback in Treasury yields. The yield of 2-year Treasuries declined below the 3.75% level, while the yield of 10-year Treasuries settled near 4.25%.
In Japan, traders focused on Consumer Confidence report. The report showed that Consumer Confidence declined from 39.7 in February to 33.3 in March, compared to analyst forecast of 38.
USD/JPY has recently made an attempt to settle below the support level at 158.00 – 158.50 but lost momentum and rebounded towards the 159.00 level. If USD/JPY climbs above the 50 MA at 159.22, it will head towards the psychologically important 160.00 level. A move above 160.00 will open the way to the test of the resistance level at 161.50 – 162.00.
If you’d like to know more about how to trade forex, please visit our educational area.