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

Key Insights

• U.S. dollar moved higher as Treasury yields tested new highs. 
• USD/CAD pulled back towards the 1.3350 level as traders reacted to the strong jobs report from Canada. 
• USD/JPY rebounded towards the 131.50 level after an unsuccessful attempt to settle below 130.

U.S. Dollar

U.S. dollar moved higher after the release of Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment improved from 64.9 in January to 66.4 in February.

Meanwhile, Treasury yields are testing new highs, and the yield of 10-year Treasuries managed to climb above the 3.70% level. The continuation of the current trend will be bullish for the American currency.

EUR/USD

EUR/USD is currently trying to settle below the 50 EMA at 1.0670. Today, EUR/USD traders will stay focused on the dynamics of Treasury yields.

While the ECB is expected to remain hawkish as inflation is a serious problem in the Eurozone, the recent changes in Fed policy outlook are bearish for the European currency.

GBP/USD

GBP/USD failed to settle above the 50 EMA at 1.2125 and moved back below the 1.2100 level.

Today, traders had a chance to take a look at the preliminary GDP data from the UK. The report indicated that GDP Growth Rate was 0% in the fourth-quarter. UK Manufacturing Production remained unchanged in December, while Industrial Production increased by 0.3% month-over-month. Both reports exceeded analyst estimates but failed to provide support to the British pound.

USD/CAD

USD/CAD declined towards the 1.3350 level as traders reacted to the strong jobs data from Canada. Traders bet that the Bank of Canada may raise rates at the next meeting.

Other commodity-related currencies are losing some ground today as traders focus on the general strength of the U.S. dollar. AUD/USD pulled back towards the 0.6925 level, while NZD/USD settled near 0.6320.

USD/JPY

USD/JPY received support near the 130 level and rebounded towards 131.50. At this point, USD/JPY is trying to break the previous trend. However, it will need to move above the 50 EMA at 132.65 to have a chance to develop sustainable upside momentum.

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