U.S. Dollar Gains Ground As Inflation Expectations Increase: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground After Michigan Consumer Sentiment Report

U.S. Dollar Index gains ground as traders react to Michigan Consumer Sentiment report, which indicated that year-ahead inflation expectations increased from 3.3% in January to 4.3% in February.

The nearest resistance level for U.S. Dollar Index is located in the 108.30 – 108.50 range. A move above the 108.50 level will push U.S. Dollar Index towards the next resistance at 109.20 – 109.40.

EUR/USD Retreats As Germany’s Industrial Production Remains Under Strong Pressure

EUR/USD is losing ground as traders react to the disappointing Industrial Production report from Germany. The report showed that Germany’s Industrial Production decreased by 2.4% month-over-month in December, compared to analyst forecast of -0.6%.

If EUR/USD settles below the support at 1.0335 – 1.0350, it will move towards the next support level, which is located in the 1.0200 – 1.0215 range.

GBP/USD Pulled Back Below 1.2400

GBP/USD atempts to settle below the 1.2400 level as traders focus on U.S. economic data.

If GBP/USD stays below the 1.2400 level, it will move towards the nearest support at 1.2355 – 1.2370. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Is Mostly Flat As Consolidation Continues

USD/CAD remains stuck below the resistance at 1.4330 – 1.4350 as traders react to the better-than-expected Employment Change report from Canada. From a big picture point of view, USD/CAD consolidates after the recent pullback.

If USD/CAD climbs above the 1.4350 level, it will head towards the 50 MA at 1.4414.

USD/JPY Remains Under Pressure As Traders Bet On Hawkish BoJ

USD/JPY tested new lows as traders remained focused on hawkish comments from the BoJ. Rising Treasury yields did not provide support to USD/JPY in today’s trading session.

In case USD/JPY settles below the 151.50 level, it will head towards the next support, which is located in the 148.50 – 149.00 range.

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