USD/CAD Tests Resistance At 1.3400 As WTI Oil Remains Under Strong Pressure
- The sell-off in oil markets put pressure on the Canadian dollar.
- GBP/USD gained upside momentum as UK Retail Sales exceeded expectations.
- USD/JPY pulled back as Japan’s Inflation Rate touched new highs.
USD/CAD Rebounds As WTI Oil Settles Below The Key $80 Level
USD/CAD moved towards the 1.3400 level as the strong sell-off pushed WTI oil towards $78. Today, USD/CAD traders also had a chance to take a look at Producer Prices data from Canada. The reports indicated that PPI increased from 9.1% in September to 10.1% in October, compared to analyst consensus of 7.8%.
Currently, USD/CAD is trying to settle above the resistance at 1.3400. In case this attempt is successful, it will move towards the 50 EMA at 1.3450. A move above the 50 EMA will open the way to the test of the resistance at 1.3470.
On the support side, the nearest support level for USD/CAD is located at 1.3360. If USD/CAD settles back below this level, it will move towards the next support level, which is located near the recent lows at 1.3300.
U.S. Dollar Gains Some Ground Ahead Of The Weekend
U.S. dollar is gaining some ground against a broad basket of currencies today as Treasury yields continue to move higher.
Today, traders focused on the Existing Home Sales report for October, which indicated that Existing Home Sales declined by 5.9% on a month-over-month basis. The report is not surprising as high interest rates put significant pressure on the housing market.
EUR/USD Faced Strong Resistance At 1.0400
EUR/USD declined below the 1.0350 level after another unsuccessful attempt to settle above the resistance level at 1.0400.
Government bond yields in the Eurozone continue to move lower, which is a positive development. Back in October, a potential debt crisis was a real risk for the EU.
Meanwhile, traders are focused on general market sentiment towards the U.S. dollar. At this point, it looks that EUR/USD does not have enough catalysts to get above the 1.0400 level in the last trading session of the week.
GBP/USD Tries To Settle Above 1.1900 As Retail Sales Exceed Expectations
GBP/USD is currently trying to settle above the 1.1900 level as traders remain bullish on the pound ahead of the weekend.
Yesterday’s pullback was quickly bought, and it looks that recent economic reports from the UK provided some support to the pound.
Gfk Consumer Confidence improved from -47 in October to -44 in November, compared to analyst consensus of -51. Retail Sales increased by 0.6% month-over-month in October, while analysts expected that they would increase by 0.3%.
USD/JPY Pulls Back As Traders React To Japan’s Inflation Data
USD/JPY moved back below the 140 level as bulls failed to push it above the important resistance at 140.60.
Japan’s inflation reports provided additional support to the yen. Inflation Rate increased from 3% in September to 3.7% in October, while Core Inflation Rate grew from 3% to 3.6%. Both reports exceeded analyst estimates.
For a look at all of today’s economic events, check out our economic calendar.