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

By:

Vladimir Zernov

Published: Jan 17, 2025, 16:44 GMT+00:00

Key Points:

EUR/USD settled near the 1.0300 level as traders reacted to Euro Area inflation data.
GBP/USD moved below the 1.2200 level as UK Retail Sales missed analyst estimates.
USD/JPY gained ground as traders focused on rising Treasury yields.

U.S. Dollar Gains Ground As Traders Focus On Housing Market Reports

DXY 170125 4h Chart

U.S. Dollar Index gains ground as traders focus on housing market data. Housing Starts increased by 15.8% month-over-month in December, compared to analyst consensus of +2%. Building Permits declined by 0.7%, compared to analyst forecast of -0.9%.

The technical picture remains unchanged as U.S. Dollar Index is stuck between the support at 108.30 – 108.50 and the resistance at 109.40 – 109.60.

EUR/USD Is Flat As Euro Area Inflation Rate Meets Estimates

EUR/USD 170125 4h Chart

EUR/USD is mostly flat as traders react to the final reading of the Euro Area Inflation Rate report for December. The report indicated that Euro Area Inflation Rate increased from 2.2% to 2.4%, in line with analyst estimates.

In case EUR/USD settles back below the 1.0300 level, it will move towards the nearest support level, which is located in the 1.0235 – 1.0250 range.

GBP/USD Pulls Back As UK Retail Sales Miss Expectations

GBP/USD 170125 4h Chart

GBP/USD is losing ground as traders focus on the disappointing UK Retail Sales report. The report showed that Retail Sales declined by 0.3% month-over-month in December, compared to analyst forecast of +0.4%.

A successful test of the support at 1.2200 – 1.2215 will open the way to the test of the next support level, which is located in the 1.2080 – 1.2100 range.

USD/CAD Pulled Back Towards 1.4400

USD/CAD 170125 4h Chart

USD/CAD made an attempt so settle above the 1.4460 level but lost momentum and pulled back towards 1.4400.

If USD/CAD settles below the 50 MA at 1.4381, it will head towards the support level at 1.4330 – 1.4350.

USD/JPY Tests Resistance At 156.00 – 156.50

USD/JPY 170125 4h Chart

USD/JPY is moving away from recent lows as traders focus on the rebound in Treasury yields.

Currently, USD/JPY is trying to settle above the resistance at 156.00 – 156.50. In case this attempt is successful, USD/JPY will head towards the 50 MA at 157.26.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.