U.S. Dollar Retreats As GDP Growth Rate Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

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.

GBP/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.

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