U.S. Dollar Is Losing Some Ground: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Attempts To Settle Below 100.80

U.S. Dollar Index is losing ground as traders react to the Initial Jobless Claims report, which indicated that 219,000 Americans filed for unemployment benefits in a week. Today, traders also had a chance to take a look at the Existing Home Sales report, which showed that Existing Home Sales declined by 2.5% month-over-month in August. Philadelphia Fed Manufacturing Index increased from -7.0 in August to +1.7 in September, compared to analyst forecast of -1. From a big picture point of view, traders stay focused on dovish Fed after the surprising 50 bps rate cut.

U.S. Dollar Index continues its attempts to settle below the support at 100.80 – 101.00. In case U.S. Dollar Index settles below the 100.80 level, it will move towards the support at 99.55 – 99.75.

EUR/USD Is Moving Higher As Traders Focus On The Recent Fed Decision

EUR/USD gains ground as traders focus on general weakness of the American currency.

If EUR/USD stays above the 1.1135 level, it will head towards the next resistance level, which is located in the 1.1185 – 1.1200 range.

GBP/USD Tests New Highs After BoE Decision

GBP/USD is moving higher as traders react to the BoE Interest Rate Decision. The BoE left the rate unchanged at 5%, in line with analyst expectations. Interestingly, just one member voted for a cut, which was bullish for the British pound.

In case GBP/USD settles above the resistance at 1.3245 – 1.3265, it will head towards the next resistance level at 1.3420 – 1.3440.

USD/CAD Pulls Back As Oil Markets Rally

USD/CAD pulls back as traders focus on the rally in commodity markets. Oil prices are up by more than 3% amid rising tensions in the Middle East, which is bullish for the Canadian dollar.

A move below the 1.3550 level will open the way to the test of the support at 1.3480 – 1.3500.

USD/JPY Continues To Rebound From Recent Lows

USD/JPY managed to settle back above the support at 141.80 – 142.50 and is trying to gain additonal momentum.

If USD/JPY climbs above the 144.00 level, it will head towards the resistance at 146.00 – 146.50.

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