U.S. Dollar Gains Ground Despite Weak GDP Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Traders Ignore Recession Risks

U.S. Dollar Index gains ground as traders react to the disappointing GDP Growth Rate report. The report indicated that GDP Growth Rate was -0.3% in the first quarter, compared to analyst forecast of +0.3%.

Currently, U.S. Dollar Index is trying to settle above the 99.50 level. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance level at 100.20 – 100.40.

EUR/USD Attempts To Settle Below 1.1350

EUR/USD is losing ground as traders react to Germany’s inflation data. Inflation Rate declined from 2.2% in March to 2.1% in April, compared to analyst consensus of 2%.

In case EUR/USD settles below the 1.1350 level, it will head towards the support level at 1.1275 – 1.1290. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

GBP/USD Tests Support At 1.3300 – 1.3320

GBP/USD tests support at 1.3300 – 1.3320 as traders focus on U.S. economic reports.

If this test is successful, GBP/USD will head towards the next support level, which is located in the 1.3200 – 1.3220 range.

USD/CAD Is Moving Lower Despite Sell-Off In The Oil Markets

USD/CAD is trying to settle below the support at 1.3800 – 1.3820 despite the strong sell-off in the oil markets.

A move below the 1.3800 level will open the way to the test of the next support level, which is located in the 1.3700 – 1.3720 range.

USD/JPY Stays Range-Bound

USD/JPY gained some ground as traders reacted to the Retail Sales report from Japan. The report showed that Retail Sales increased by +3.1% year-over-year in March, compared to analyst consensus of +3.5%.

From the technical point of view, USD/JPY remains stuck in a range between the support level at 141.50 – 142.00 and the resistance level at 143.50 – 144.00.

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