U.S. Dollar Gains Ground As Inflation Rate Rises To 3%: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Rises As Inflation Exceeds Estimates

U.S. Dollar Index is moving higher as traders react to the higher-than-expected inflation data. Inflation Rate increased from 2.9% in December to 3% in January, compared to analyst consensus of 2.9%. Core Inflation Rate grew from 3.2% to 3.3%.

Currently, U.S. Dollar Index is trying to settle above the resistance at 108.30 – 108.50. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 109.20 – 109.40 range.

EUR/USD Remains Stuck Near 1.0350

EUR/USD is mostly flat as traders focus on U.S. economic data. It looks that some traders are ready to be that the EU will be able to successfully negotiate with the U.S. and avoid tariffs.

In case EUR/USD stays above the 1.0335 – 1.0350 level, it will head towards the next resistance level at 1.0420 – 1.0435.

GBP/USD Pulls Back As Traders React To U.S. Inflation Data

GBP/USD pulled back as traders focused on general strength of the American currency.

The nearest support level for GBP/USD is located in the 1.2355 – 1.2370 range. A move below this level will push GBP/USD towards the next support at 1.2250 – 1.2265.

USD/CAD Attempts To Settle Below 1.4270

USD/CAD gained some ground as demand for commodity-related currencies declined.

In case USD/CAD declines below the 1.4270 level, it will gain additional downside momentum and move towards the next support level, which is located in the 1.4180 – 1.4200 range.

USD/JPY Tests New Highs As Treasury Yields Rise

USD/JPY rallied as traders focused on rising Treasury yields. The yield of 2-year Treasuries climbed above the 4.35% level, while the yield of 10-year Treasuries settled near the 4.65% level.

From the technical point of view, USD/JPY moved above the resistance at 153.50 – 154.00 and is trying to settle above the 155.00 level. In case this attempt is successful, it will head towards the next resistance at 156.00 – 156.50.

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