EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Mixed After Consumer Sentiment Report

Key Insights

• EUR/USD is mostly flat after Germany’s Producer Prices fell more than expected in December. 
• GBP/USD is moving lower as UK Retail Sales declined by 3.2% month-over-month in December. 
• USD/JPY settled above 148.00 as traders reacted to inflation data from Japan.

U.S. Dollar

U.S. Dollar Index is swinging between gains and losses as traders react to Michigan Consumer Sentiment report, which showed that Consumer Sentiment improved to its highest level since July 2021.

The nearest resistance for U.S. Dollar Index is located in the 103.50 – 103.75 range. A successful test of this level will open the way to the test of the resistance at 104.35 – 104.55.

EUR/USD

EUR/USD is mostly flat as traders focus on Germany’s PPI report, which showed that PPI declined by 1.2% month-over-month in December.

If EUR/USD manages to settle above 1.0900, it will move towards the nearest resistance, which is located in the 1.0925 – 1.0950 range.

GBP/USD

GBP/USD  is losing ground as traders react to the disappointing UK Retail Sales report, which indicated that Retail Sales decreased by 3.2% month-over-month in December.

If GBP/USD settles below the support at 1.2650 – 1.2685, it will move towards the next support level at 1.2500 – 1.2520.

USD/CAD

USD/CAD is losing ground as commodity-related currencies are trying to rebound against the U.S. dollar.

A move below the 1.3450 level will push USD/CAD towards the nearest support level at 1.3380 – 1.3410.

USD/JPY

USD/JPY is mostly flat as traders focus on Japan’s inflation reports. Inflation Rate declined from 2.8% in November to 2.6% in December, while Core Inflation Rate decreased from 2.5% to 2.3%.

RSI has recently moved back into the moderate territory, so there is enough room to gain additional upside momentum in case the right catalysts emerge.

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