U.S. Dollar Gains Ground After CPI Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gained Some Ground As Inflation Data Met Expectations

U.S. Dollar Index gained some ground as traders reacted to the inflation report. Inflation Rate increased from 2.6% in October to 2.7% in November, while Core Inflation Rate remained unchanged at 3.3%. Both reports met analyst estimates.

If U.S. Dollar Index settles above the 106.50 level, it will move towards the next resistance level at 107.10 – 107.30.

EUR/USD Pulled Back As Traders Focused On U.S. CPI Report

EUR/USD pulled back as traders focused on U.S. inflation data. Rising Treasury yields put additional pressure on the euro.

If EUR/USD stays below the support at 1.0525 – 1.0540, it will head towards the next support level at 1.0435 – 1.0450. On the upside, a move above the 1.0540 level will open the way to the test of the resistance at 1.0620 – 1.0640.

GBP/USD Stays Range-Bound As Traders Wait For Catalysts

GBP/USD is mostly flat as it continues to consolidate in a wide range between 1.2715 and 1.2800.

If GBP/USD climbs above the 1.2800 level, it will head towards the next resistance level at 1.2850 – 1.2870.

USD/CAD Pulls Back After BoC Decision

USD/CAD pulled back as traders reacted to BoC Interest Rate Decision. The Bank of Canada cut the rate from 3.75% to 3.25%, in line with analyst consensus. BoC has also signaled that further rate cuts would be more gradual, providing support to the Canadian dollar.

If USD/CAD declines below the support at 1.4100 – 1.4120, it will move towards the next support level at 1.3930 – 1.3950.

USD/JPY Is Moving Higher As Treasury Yields Rise

USD/JPY continues to move higher as traders focus on rising Treasury yields and bet on a more hawkish Fed.

The nearest resistance level for USD/JPY is located in the 153.00 – 153.50 range. A move above the 153.50 level will push USD/JPY towards the resistance at 156.00 – 156.50.

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