U.S. Dollar Is Flat After PCE Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Mostly Flat As Traders Focus On Economic Data

U.S. Dollar Index is mostly flat as traders react to the PCE Price Index report, which showed that PCE Price Index increased by 0.2% month-over-month in September. The report met analyst estimates. Core PCE Price Index increased by 0.3% on a month-over-month basis, in line with analyst expectations.

If U.S. Dollar Index settles above the 50 MA at 104.18, it will move towards the next resistance level, which is located in the 104.60 – 104.80 range.

EUR/USD Tested New Highs As Inflation Rate Exceeded Expectations

EUR/USD pulled back from session highs as traders focused on inflation data. Euro Area Inflation Rate increased from 1.7% in September to 2.0% in October, compared to analyst consensus of 1.9%. Core Inflation Rate remained unchanged at 2.7%, while analysts expected that it would drop to 2.6%. Higher-than-expected inflation reports provided some support to the euro.

The nearest resistance level for EUR/USD is located in he 1.0900 – 1.0915 range. A move above the 1.0915 level will push EUR/USD towards the resistance at 1.1000 – 1.1015.

GBP/USD Pulls Back As Traders Worry About High Government Spending

GBP/USD is under strong pressure as traders react to UK budget. Traders worry that high taxes and high spending would be bearish for the pound.

A successful test of the support at 1.2870 – 1.2880 will push GBP/USD towards the next support level at 1.2750 – 1.2765.

USD/CAD Attempts To Settle Above 1.3950

USD/CAD continues its attempts to settle above the resistance at 1.3930 – 1.3950 as traders react to the GDP report from Canada. GDP increased by 0.3% in September, compared to analyst consensus of +0.4%.

A move above 1.3950 will push USD/CAD towards the next resistance level at 1.4150 – 1.4170.

USD/JPY Is Losing Ground As Traders Focus On BoJ Decision

USD/JPY pulled back as BoJ left the interest rate unchanged at 0.25% but highlighted inflation risks.

If USD/JPY settles below the 50 MA at 152.35, it will move towards the next support level at 149.50 – 150.00.

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