U.S. Dollar Gains Ground Ahead Of Fed Decision: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Moving Higher As Traders Prepare For Fed Decision

U.S. Dollar Index gains some ground ahead of Fed decision, which will be released today. Analysts expect that Fed will keep the rate unchanged at 4.5% to provide itself with more time to evaluate the economic data and monitor the first results of Trump’s tariff policy.

The nearest resistance level for U.S. Dollar Index is located in the 108.30 – 108.50 range. A move above the 108.50 level will push U.S. Dollar Index towards the next resistance level at 109.20 – 109.40.

EUR/USD Rebounds From Session Lows

EUR/USD managed to rebound from session lows despite the disappointing GfK Consumer Confidence report from Germany. The report indicated that Consumer Confidence declined from -21.4 in January to -22.4 in February, compared to analyst consensus of -20.

If EUR/USD climbs back above the resistance at 1.0420 – 1.0435, it will head towards the next resistance level, which is located in the 1.0515 – 1.0530 range.

GBP/USD Is Mostly Flat Ahead Of Fed Decision

GBP/USD is mostly flat in volatile trading. There are no important economic reports scheduled to be released in the UK today, so traders focus on general market sentiment and wait for Fed decision.

A move above the 1.2450 level will open the way to the test of the resistance level at 1.2485 – 1.2500.

USD/CAD Moved Above 1.4400 After BoC Decision

USD/CAD moved higher as traders reacted to BoC Interest Rate Decision. Canada’s central bank cut the rate from 3.25% to 3.0%, in line with analyst expectations.

If USD/CAD settles above the recent highs at 1.4470, it will move towards the nearest resistance level at 1.4540 – 1.4560.

USD/JPY Tests The 155.00 Level

USD/JPY is losing ground as traders focus on rising Treasury yields. Traders also reacted to Japan’s Consumer Confidence report, which showed that Consumer Confidence declined from 36.2 in December to 35.2 in January, compared to analyst forecast of 36.6.

A move below the 155.00 level will push USD/JPY towards the support level at 153.50 – 154.00.

For a look at all of today’s economic events, check out our economic calendar.