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

U.S. Dollar Is Losing Ground As Traders React To CPI Report

U.S. Dollar Index retreats as traders focus on inflation data. Inflation Rate remained unchanged at 2.7% in July, compared to analyst forecast of 2.8%. Core Inflation Rate increased from 2.9% to 3.1%, compared to analyst consensus of 3.0%.

Currently, U.S. Dollar Index is trying to settle below the support at 98.00 – 98.20. In case this attempt is successful, U.S. Dollar Index will head towards the next support, which is located in the 97.10 – 97.30 range.

EUR/USD Tests The 1.1700 Level

EUR/USD rallied as traders focused on inflation reports from the U.S. In the EU, traders had a chance to take a look at Euro Area ZEW Economic Sentiment Index report for August. The report indicated that Economic Sentiment decreased from 36.1 to 25.1, compared to analyst forecast of 28.1.

If EUR/USD settles above the resistance at 1.1685 – 1.1700, it will move towards the next resistance level at 1.1800 – 1.1815.

GBP/USD Tests New Highs

GBP/USD is moving higher as traders react to UK Unemployment Rate report. The report showed that UK Unemployment Rate remained unchanged at 4.7% in June, in line with analyst consensus.

A successful test of the resistance at 1.3485 – 1.3500 will open the way to the test of the next resistance level at 1.3570 – 1.3585.

USD/CAD Retreats As Demand For U.S. Dollar Declines

USD/CAD is losing ground amid rising demand for commodity-related currencies.

A move below the support at 1.3735 – 1.3750 will open the way to the test of the next support level at 1.3585 – 1.3600.

USD/JPY Moved Back Below The 148.00 Level

USD/JPY pulled back as traders focused on general weakness of the American currency.

The technical picture remains unchanged as USD/JPY is stuck near the 148.00 level.

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