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

U.S. Dollar Index Tests Support At 98.00 – 98.15

U.S. Dollar Index remains under pressure as traders focus on the weaker-than-expected Services PMI report. The report indicated that Services PMI remained unchanged at 52.5 in January, compared to analyst forecast of 52.8.

Currently, U.S. Dollar Index is trying to settle below the support at 98.00 – 98.15. In case this attempt is successful, U.S. Dollar Index will move towards the next support, which is located in the 97.10 – 97.25 range.

EUR/USD Gains Ground As Traders React To Economic Reports

EUR/USD is moving higher despite the weaker-than-expected Euro Area Services PMI report. The report showed that Euro Area Services PMI declined from 52.4 in December to 51.9 in January, compared to analyst forecast of 52.6.

If EUR/USD stays above the 1.1750 level, it will move towards the next resistance level at 1.1790 – 1.1805.

GBP/USD Tests Resistance At 1.3570 – 1.3585

GBP/USD tests new highs as traders focus on the better-than-expected UK Retail Sales data. UK Retail Sales increased by +0.4% month-over-month in December, compared to analyst forecast of -0.1%. On a year-over-year basis, Retail Sales grew by +2.5%.

A successful test of the resistance at 1.3570 – 1.3585 will open the way to the test of the next resistance level at 1.3710 – 1.3725.

USD/CAD Retreats As Gold And Silver Test Historic Highs

USD/CAD pulls back as silver tests the $100 level. Other commodity-related currencies have also moved higher in today’s trading session.

A move below the support at 1.3735 – 1.3750 will open the way to the test of the next support at 1.3650 – 1.3665.

USD/JPY Is Volatile After BoJ Decision

USD/JPY is swinging between gains and losses as traders react to BoJ Interest Rate Decision. The Bank of Japan left the interest rate unchanged at 0.75%, in line with analyst estimates. Today, traders also focused on inflation data from Japan. Inflation Rate declined from 2.9% in November to 2.1% in December, compared to analyst forecast of 2.7%. Core Inflation Rate decreased from 3% to 2.4%, in line with analyst estimates.

If USD/JPY pulls back below the 157.00 level, it will move towards the support at 154.50 – 155.00.

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