EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Retreats After Durable Goods Data

Key Insights

• U.S. dollar pulled back from multi-week highs. 
• EUR/USD made an attempt to settle above the 1.0600 level. 
• USD/JPY tested resistance at 136.50.

U.S. Dollar

U.S. dollar is under pressure as traders take some profits off the table after the recent rally. Treasury yields moved lower, which served as a bearish catalyst for the American currency.

Today, traders focused on the Durable Goods Orders report, whcih showed that Durable Goods Orders declined by 4.5% month-over-month in January, compared to analyst consensus of -4%. Pending Home Sales exceeded analyst expectations but did not provide material support to the American currency.

EUR/USD

EUR/USD has recently made an attempt to settle above the 1.0600 level. Today, EU reported that Euro Area Economic Sentiment declined from 99.8 in January to 99.7 in February, compared to analyst consensus of 101. Traders focused on the rising appetite for risk, which provided support to the European currency.

GBP/USD

GBP/USD has also managed to gain upside momentum in today’s trading session. There are no important economic reports scheduled to be released in the UK today, so traders will remain focused on general market sentiment.

USD/CAD

USD/CAD moved back below the 1.3600 level despite the pullback in the oil markets. In case USD/CAD manages to settle below the support at 1.3550, it will gain additional downside momentum and head towards the next support level at 1.3520.

Other commodity-related currencies were mostly flat in today’s trading session. AUD/USD settled near the 0.6730 level, while NZD/USD traded near 0.6160.

USD/JPY

USD/JPY made an attempt to settle above the resistance at 136.50 but failed to develop sufficient upside momentum and pulled back. USD/JPY has been moving higher in recent weeks as traders have started to price in additional rate hikes from the Fed. A move above the 136.50 level will open the way to the test of the next resistance at 137.50.

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