U.S. Dollar Retreats From Session Highs As Court Strikes Down Trump’s Tariffs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulled Back From Session Highs

U.S. Dollar Index is losing ground as U.S. Supreme Court ruled that President Trump exceeded his authority when imposing tariffs. Earlier, Trump said that he had a plan for such a scenario.

Today, traders also focused on the GDP Growth Rate report for the fourth qaurter. The report indicated that GDP Growth Rate was +1.4%, compared to analsyt forecast of +3%.

Currently, U.S. Dollar Index is trying to settle below the 97.70 level. In case this attempt is successful, U.S. Dollar Index will move towards the nearest support, which is located in the 97.10 – 97.35 range.

EUR/USD Gained Ground After U.S. Supreme Court Decision

EUR/USD gains ground as traders focus on the Euro Area Composite PMI report. The report showed that Euro Area Composite PMI increased from 51.3 in January to 51.9 in February, compared to analyst forecast of 51.5. Numbers above 50 show expansion.

Euro Area Composite PMI moved higher as Euro Area Manufacturing PMI exceeded analyst estimates. Manufacturing PMI grew from 49.5 in January to 50.8 February, compared to analyst consensus of 50.

EUR/USD attempts to settle above the nearest resistance level at 1.1770 – 1.1785. In case EUR/USD manages to settle above the 1.1785 level, it will move towards the next resistance at 1.1835 – 1.1850.

GBP/USD Tested Resistance At 1.3485 – 1.3500

GBP/USD is moving higher as traders focus on U.S. Supreme Court decision and react to PMI data from the UK.

UK Manufacturing PMI improved from 51.8 in January to 52.0 in February, compared to analyst forecast of 51.5. UK Services PMI declined from 54.0 to 53.9, while analysts expected that it would decrease to 53.5.

If GBP/USD climbs above the resistance at 1.3485 – 1.3500, it will head towards the next resistance level at 1.3565 – 1.3580. RSI has recently moved away from the oversold territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.

USD/CAD Remained Range-Bound

USD/CAD is moving higher despite the strong rally in precious metals markets. Gold climbed above the $5050 level, while silver moved above the $82.00 level. Other commodity-related currencies were mixed in today’s trading session.

Today, traders also focused on the Retail Sales report from Canada. The report indicated that Retail Sales declined by -0.4% month-over-month in December, compared to analyst forecast of -0.5%.

In January, Retail Sales increased by +1.5%, while analysts expected that they would grow by just 0.2%.

From the technical point of view, USD/CAD is stuck in tight range between 1.3665 and 1.3710. The nearest significant resistance level is located in the 1.3725 – 1.3740 range. A successful test of this level will open the way to the test of the next resistance at 1.3835 – 1.3850.

USD/JPY Settled Near 155.00 As Traders Focused On Japan’s Inflation Data

USD/JPY pulled back from session highs as U.S. Supreme Court said that Trump’s tariffs were illegal.

In Japan, traders focused on inflation data. Inflation Rate declined from 2.1% in December to 1.5% in January, compared to analyst forecast of 1.9%. Core Inflation Rate decreased from 2.4% to 2.0%, in line with analyst consensus.

Lower-than-expected inflation data is bearish for the Japanese yen as it shows that BoJ does not need to raise rates to fight inflation.

USD/JPY continues its attempts to settle above the resistance level at 154.50 – 155.00. If USD/JPY settles above the 155.00 level, it will move towards the next resistance level at 158.00 – 158.50.

The key question is whether BoJ will try to defend the yen if USD/JPY approaches the 157.00 – 158.00 area. Back in January, USD/JPY quickly moved from 158.50 to 152.00 as traders focused on intervention risks.

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