U.S. Dollar Index managed to rebound from session lows as traders reacted to inflation data. Inflation Rate increased by 0.2% month-over-month, in line with analyst expectations. Core Inflation Rate grew by 0.3%, compared to analyst consensus of 0.3%. The higher-than-expected Core Inflation Rate provided support to the American currency.
In case U.S. Dollar Index manages to settle above the 101.70 level, it will move towards the nearest resistance at 102.00 – 102.20.
EUR/USD pulled back as traders focused on inflation reports from the U.S. Treasury yields rebounded from recent lows, which was bearish for EUR/USD.
The nearest support level for EUR/USD is located in the 1.0980 – 1.1000 range. If EUR/USD manages to settle below the 1.0980 level, it will move towards the next support at 1.0885 – 1.0900.
GBP/USD tests support at 1.3025 – 1.3045 as traders react to UK GDP data. GDP remained unchanged in July, compared to analyst forecast of +0.2%. Industrial Production decreased by 0.8% month-over-month in July, while Manufacturing Production declined by 1%.
If GBP/USD settles below the 1.3025 level, it will head towards the support, which is located in the 1.2880 – 1.2900 range.
USD/CAD is losing some ground as traders focus on the rebound in the oil markets.
A move above the resistance at 1.3600 – 1.3620 will open the way to the test of the next resistance level at 1.3700 – 1.3715.
USD/JPY is moving lower despite the rebound in Treasury yields as traders bet on dovish Fed.
From the technical point of view, USD/JPY continues its attempts to settle below the support at 141.80 – 142.50. In case USD/JPY settles below this support level, it will head towards the next support at 138.50 – 139.00.
For a look at all of today’s economic events, check out our economic calendar.
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.