U.S. Dollar Is Flat After PCE Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Oct 31, 2024, 17:00 GMT+00:00

Key Points:

EUR/USD made an attempt to settle above 1.0890 as Euro Area inflation exceeded analyst expectations.
GBP/USD tested multi-month lows as traders focused on UK budget.
USD/JPY pulled back as BoJ left the interest rate unchanged.

U.S. Dollar Is Mostly Flat As Traders Focus On Economic Data

DXY 311024 4h Chart

U.S. Dollar Index is mostly flat as traders react to the PCE Price Index report, which showed that PCE Price Index increased by 0.2% month-over-month in September. The report met analyst estimates. Core PCE Price Index increased by 0.3% on a month-over-month basis, in line with analyst expectations.

If U.S. Dollar Index settles above the 50 MA at 104.18, it will move towards the next resistance level, which is located in the 104.60 – 104.80 range.

EUR/USD Tested New Highs As Inflation Rate Exceeded Expectations

EUR/USD 311024 4h Chart

EUR/USD pulled back from session highs as traders focused on inflation data. Euro Area Inflation Rate increased from 1.7% in September to 2.0% in October, compared to analyst consensus of 1.9%. Core Inflation Rate remained unchanged at 2.7%, while analysts expected that it would drop to 2.6%. Higher-than-expected inflation reports provided some support to the euro.

The nearest resistance level for EUR/USD is located in he 1.0900 – 1.0915 range. A move above the 1.0915 level will push EUR/USD towards the resistance at 1.1000 – 1.1015.

GBP/USD Pulls Back As Traders Worry About High Government Spending

GBP/USD 311024 4h Chart

GBP/USD is under strong pressure as traders react to UK budget. Traders worry that high taxes and high spending would be bearish for the pound.

A successful test of the support at 1.2870 – 1.2880 will push GBP/USD towards the next support level at 1.2750 – 1.2765.

USD/CAD Attempts To Settle Above 1.3950

USD/CAD 311024 4h Chart

USD/CAD continues its attempts to settle above the resistance at 1.3930 – 1.3950 as traders react to the GDP report from Canada. GDP increased by 0.3% in September, compared to analyst consensus of +0.4%.

A move above 1.3950 will push USD/CAD towards the next resistance level at 1.4150 – 1.4170.

USD/JPY Is Losing Ground As Traders Focus On BoJ Decision

USD/JPY 311024 4h Chart

USD/JPY pulled back as BoJ left the interest rate unchanged at 0.25% but highlighted inflation risks.

If USD/JPY settles below the 50 MA at 152.35, it will move towards the next support level at 149.50 – 150.00.

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

About the Author

Vladimir Zernovauthor

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.