U.S. Dollar Moves Higher After CPI Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Some Ground As Core Inflation Rate Rises To 3.3%

U.S. Dollar Index gained some ground as traders reacted to U.S. inflation reports. Inflation Rate declined from 2.5% in August to 2.4% in September, while Core Inflation Rate increased from 3.3% to 3.2%. Both reports exceeded analyst estimates.

A move above the 103.00 level will push U.S. Dollar Index towards the next resistance level, which is located in the 103.40 – 103.60 range.

EUR/USD Tests New Lows As Traders Focus On U.S. Inflation Reports

EUR/USD tests support at 1.0900 – 1.0915 as traders focus on U.S. inflation data. The yield of 2-year Treasuries pulled back towards the 3.96% level, but this move did not provide support to EUR/USD.

In case EUR/USD manages to settle below the support at 1.0900 – 1.0915, it will head towards the next support level, which is located in the 1.0765 – 1.0780 range.

GBP/USD Tested Support At 1.3000 – 1.3020

GBP/USD remains under pressure as traders bet that Fed will be less dovish due to rising Core Inflation Rate.

Currently, GBP/USD is trying to settle below the support at 1.3000 – 1.3020. RSI is in the moderate territory, so there is enough room to gain additional downside momentum in the near term.

USD/CAD Gained Ground Despite The Rebound In The Oil Markets

USD/CAD tests new highs despite the strong rebound in the oil markets. Other commodity-related currencies have managed to gain ground in today’s trading session.

If USD/CAD settles above the 1.3750 level, it will head towards the resistance at 1.3800 – 1.3815.

USD/JPY Moved Away From Multi-Week Highs

USD/JPY moved away from recent highs as traders continued to take profits off the table despite rising core inflation in the U.S.

If USD/JPY manages to settle below the 148.50 level, it will head towards the recent lows at 147.34. A move below this level will open the way to the test of the support at 146.00 – 146.50.

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