EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rallies After Strong GDP Data

Key Insights

• EUR/USD pulled back below the 1.1000 level after ECB raised the rate from 4.00% to 4.25%. 
• GBP/USD declined towards the 1.2850 level. 
• USD/JPY moved above the 141 level as traders prepared for the BoJ Interest Rate Decision, which will be released tomorrow. 

U.S. Dollar

U.S. Dollar Index rallied as traders reacted to the better-than-expected GDP Growth Rate report, which indicated that GDP Growth Rate increased to 2.4% in the second quarter.

From the technical point of view, U.S. Dollar Index settled above the support at 101.00 – 101.15 and is moving towards the resistance in the 102.00 – 102.15 range.

EUR/USD

EUR/USD pulls back as traders react to the ECB Interest Rate Decision. The European Central Bank raised the rate from 4% to 4.25%, but it looks that traders expected more hawkish commentary from Lagarde.

Currently, EUR/USD is trying to settle below the 200 MA at 1.0990. In case this attempt is successful, EUR/USD will test the support in the 1.0950 – 1.0975 range.

GBP/USD

GBP/USD pulled back as traders focused on the general strength of the U.S. dollar. Treasury yields are moving higher, providing additional support to the American currency.

In case GBP/USD manages to settle below the support at 1.2820 – 1.2850, it will head towards the next support level, which is located in the 1.2725 – 1.2750 range.

USD/CAD

USD/CAD is mostly flat as the rally in the oil markets provides some support to the Canadian dollar.

USD/CAD remains stuck between the support at 1.3120 and the resistance at 1.3240, and it will need additional catalysts to move out of the current trading range.

USD/JPY

USD/JPY is moving higher as traders focus on rising Treasury yields. Traders also prepare for the BoJ Interest Rate Decision, which will be released tomorrow.

In case USD/JPY stays above the 140.80 level, it will gain additional upside momentum and move towards the next resistance in the 141.85 – 142.35 range.

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