U.S. Dollar Index is mostly flat as traders react to housing market data. Housing Starts increased by +11.2% month-over-month in February, compared to analyst forecast of -1.9%. Building Permits declined by -1.2%, while analysts expected that they would decrease by -0.2%.
In case U.S. Dollar Index settles below the support at 103.20 – 103.40, it will head towards the next support level, which is located in the 102.00 – 102.20 range.
EUR/USD gained some round as traders reacted to the better-than-expected Euro Area ZEW Economic Sentiment Index report. The report showed that Economic Sentiment increased from 24.2 in February to 39.8 in March, compared to analyst forecast of 39.6.
A move above the resistance at 1.0920 – 1.0935 will push EUR/USD towards the next resistance level, which is located in the 1.1030 – 1.1050 range.
GBP/USD is flat as traders wait for additional catalysts. From a big picture point of view, traders are not ready for big moves ahead of Fed decision, which will be released tomorrow.
In case GBP/USD settles above the 1.3000 level, it will head towards the resistance level at 1.3050 – 1.3070.
USD/CAD attempts to rebound after the recent pullback as traders focus on inflation data from Canada. Inflation Rate increased from 1.9% in January to 2.6% in February, compared to analyst forecast of 2.2%. Core Inflation Rate grew from 2.1% to 2.7%, while analysts expected that it would increase to 2.2%.
If USD/CAD climbs above the resistance at 1.4330 – 1.4350, it will head towards the next resistance at 1.4485 – 1.4500.
USD/JPY is moving higher as traders prepare for tomorrow’s BoJ Interest Rate Decision. Analysts expect that BoJ will leave the interest rate unchanged at 0.5%.
In case USD/JPY stays above the resistance at 149.00 – 149.50, it will head towards the next resistance level at 152.00 – 152.50.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.