EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground After Strong Economic Data

Key Insights

• GBP/USD failed to settle above the 1.2400 level. 
• AUD/USD pulled back below 0.7100.
• USD/JPY climbed above the 130 level. 

U.S. Dollar (DXY)

U.S. dollar gained ground after the release of economic data from the U.S. The GDP report exceeded analyst expectations, indicating that economy remained in a decent shape despite recession worries.

New Home Sales have surprisingly increased by 2.3% in December as buyers reacted to the recent pullback in mortgage rates. The economic data was strong, and the U.S. dollar moved away from multi-month lows.

EUR/USD

EUR/USD failed to settle above the 1.0900 level and pulled back. Strong economic data from the U.S. served as the main catalyst for the pullback.

In addition, some traders want to take profits off the table after the strong rally as EUR/USD has been moving higher without any material pullback since November.

GBP/USD

GBP/USD made an attempt to settle above the 1.2400 level but failed to develop sufficient upside momentum and pulled back.

Most likely, GBP/USD will need significant catalysts to settle above the key resistance at 1.2450. The U.S. dollar is trading near multi-month lows, and its strong pullback may have already attracted some potential buyers who are willing to bet on the rebound of the American currency.

USD/CAD

USD/CAD received support near the 1.3300 level and rebounded towards 1.3350. While rising oil prices provide some support to the Canadian dollar, the general strength of the U.S. dollar is bullish for USD/CAD.

Other commodity-related currencies are losing ground in today’s trading session. AUD/USD declined below the 0.7100 level, while NZD/USD pulled back towards 0.6460.

USD/JPY

USD/JPY moved back above the 130 level and is trying to settle above 130.50. It should be noted that USD/JPY remains stuck below the 20 EMA. A move above the 20 EMA will signal that USD/JPY is ready to develop additional upside momentum.

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