U.S. Dollar Gains Ground Ahead Of FOMC Minutes: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Continues To Rebound

U.S. Dollar Index gains ground as traders react to housing market reports. Building Permits increased by +0.1% month-over-month in January, compared to analyst forecast of -0.8%. Housing Starts declined by -9.8%, while analysts expected that they would fall by -9.0%.

In case U.S. Dollar Index settles above the 50 MA at 107.47, it will move towards the nearest resistance level, which is located in the 108.30 – 108.50 range.

EUR/USD Is Moving Towards 1.0400

EUR/USD is trying to settle below the support at 1.0420 – 1.0435 as the pullback continues.

In case this attempt is successful, EUR/USD will move towards the next support level at 1.0300 – 1.0315.

GBP/USD Pulls Back As Traders React To Inflation Reports

GBP/USD is moving lower as traders focus on inflation data from the UK. Inflation Rate increased from 2.5% in December to 3% in January, compared to analyst forecast of 2.8%. Core Inflation Rate grew from 3.2% to 3.7%, in line with analyst expectations.

If GBP/USD declines below the 1.2550 level, it will move towards the support at 1.2485 – 1.2500. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Gains Ground As Demand For Commodity-Related Currencies Declines

USD/CAD is moving higher as traders focus on the pullback in precious metals markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the 50 MA at 1.4248 will push USD/CAD towards the resistance level at 1.4330 – 1.4350.

USD/JPY Continues Its Attempts To Settle Below 151.50

USD/JPY remains under pressure as traders react to the weaker-than-expected Exports report from Japan. The country’s Exports increased by +7.2% year-over-year in January, compared to analyst forecast of +7.9%.

If USD/JPY manages to settle below the nearest support at 151.50 – 152.00, it will move towards the next support level at 149.00 – 149.50.

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