U.S. Dollar Retreats As Traders Focus On Geopolitics And Ignore GDP Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back As Traders Focus On Geopolitical Risks

U.S. Dollar Index is losing ground despite the better-than-expected third-quarter GDP Growth Rate report. The report showed that GDP Growth Rate was 4.4%, compared to anlayst forecast of 4.3%. The strong report did not provide support to the American currency as traders worried that European investors will reduce their exposure to the U.S. due to Trump’s policy.

The nearest support level for U.S. Dollar Index is located in the 98.00 – 98.15 range. A move below the 98.00 level will push U.S. Dollar Index towards the next support at 97.10 – 97.25.

EUR/USD Tests The 1.1750 Level

EUR/USD climbed above the resistance at 1.1715 – 1.1730 as traders reacted to the Euro Area Consumer Confidence report for January. The report showed that Consumer Confidence improved from -13.1 in December to -12.4 in January, compared to analyst forecast of -13.6.

In case EUR/USD stays above the resistance at 1.1715 – 1.1730, it will move towards the next resistance level, which is located in the 1.1790 – 1.1805 range.

GBP/USD Tests Resistance At 1.3475 – 1.3490

GBP/USD rallied as traders focused on general weakness of the American currency. Currently, GBP/USD is trying to settle above the resistance at 1.3475 – 1.3490.

In case this attempt is successful, GBP/USD will move towards the next resistance level at 1.3570 – 1.3585.

USD/CAD Moves Lower As Precious Metals Rally

USD/CAD pulls back amid strong rally in precious metals markets. The pullback in the oil markets did not put any pressure on the Canadian dollar. Other commodity-related currencies have also moved higher in today’s trading session.

If USD/CAD manages to settle below the 1.3800 level, it will move towards the support at 1.3735 – 1.3750.

USD/JPY Attempts To Gain Additional Upside Momentum

USD/JPY made an attempt to settle above the 158.50 level but lost momentum and pulled back. From a big picture point of view, traders stay focused on the problems of the Japanese economy and the country’s weak debt markets.

In case USD/JPY manages to settle above the 158.50 level, it will move towards 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.