U.S. Dollar Gains Ground As ECB Cuts Rates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Is Stuck Near The 99.50 Level

U.S. Dollar Index gains ground as traders react to the Initial Jobless Claims report. The report showed that 215,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 225,000.

If U.S. Dollar Index manages to settle back above the 99.50 level, it will head towards the nearest resistance level, which is located in the 100.20 – 100.40 range.

EUR/USD Pulls Back As ECB Cuts Rates

EUR/USD is losing ground as traders focus on the ECB Interest Rate Decision. The central bank cut the interest rate from 2.65% to 2.45%, in line with analyst estimates. Interestingly, the ECB removed the word “restrictive” from the statement when talking about its monetary policy stance. Nevertheless, traders look ready to bet on additional rate cuts due to trade wars.

In case EUR/USD manages to settle below the 1.1350 level, it will head towards the next support at 1.1275 – 1.1290.

GBP/USD Is Moving Towards Recent Highs

GBP/USD gained some ground as traders remained focused on trade wars and reacted to U.S. economic reports.

A move above the 1.3250 level opens the way to the test of the nearest resistance level, which is located in the 1.3300 – 1.3320 range.

USD/CAD Tests The 1.3850 Level

USD/CAD is mostly flat despite the strong rally in the oil markets, which was triggered by new Iran-related sanctions.

A successful test of the support at 1.3800 – 1.3820 will open the way to the test of the next support level at 1.3720 – 1.3740.

USD/JPY Attempts To Rebound As Treasury Yields Rise

USD/JPY did not manage to settle below the support level at 141.50 – 142.00 as Treasury yields have started to move higher.

If USD/JPY declines below the 141.50 level, it will gain additional downside momentum and move towards the next support at 139.50 – 140.00.

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