U.S. Dollar Index pulls back as traders react to economic reports. Housing Starts increased by 3.0% month-over-month in June, compared to analyst consensus of +3.1%. Building Permits grew by 3.4%, while analysts expected that they would increase by 0.5%. Industrial Production increased by 0.6% on a month-over-month basis, compared to analyst forecast of +0.3%.
In case U.S. Dollar Index pulls back below the support at 103.50 – 103.75, it will move towards the next support level, which is located in the 102.35 – 102.65 range.
EUR/USD gains ground as traders react to the final reading of the Euro Area inflation report for June, which met analyst estimates. From a big picture point of view, traders have already started to prepare for the beginning of the Fed rate cut cycle.
In case EUR/USD manages to stay above the resistance at 1.0900 – 1.0915, it will head towards the next resistance level, which is located in the 1.1000 – 1.1015 range.
GBP/USD is trying to settle above the 1.3000 level as traders react to inflation data from the UK. Inflation Rate remained unchanged at 2% in June, compared to analyst consensus of 1.9%. Core Inflation Rate was 3.5%, in line with analyst consensus.
If GBP/USD settles above the 1.3000 level, it will move towards the resistance at 1.3125 – 1.3140.
USD/CAD gains some ground as precious metals markets pull back amid profit-taking.
A move above the 1.3700 level will push USD/CAD towards the resistance at 1.3785 – 1.3800.
USD/JPY tests new lows as traders bet on dovish Fed. The successful test of the previous support at 158.00 – 158.50 provided USD/JPY with an opportunity to gain additional downside momentum.
In case USD/JPY settles below the 156.50 level, it will head towards the nearest support, which is located in the 154.50 – 155.00 range.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.