U.S. Dollar Is Mostly Flat At The Start Of The Week
U.S. dollar is swinging between gains and losses as Treasury yields pull back. Traders are cautious ahead of CPI data, which will be released tomorrow.
Analysts expect that Inflation Rate declined from 7.7% in October to 7.3% in November. Core Inflation Rate is expected to decrease from 6.3% to 6.1%.
These reports will be released ahead of the Fed Interest Rate Decision on Wednesday, and traders have already started to prepare for these important events.
EUR/USD Gains Ground While Traders Wait For Catalysts
EUR/USD moved above the 1.0550 level and is trying to gain additional upside momentum. There are no important economic reports scheduled to be released in the Euro Area today, so traders will stay focused on general market sentiment.
The nearest significant resistance level for EUR/USD is located at 1.0600. If EUR/USD manages to settle above this level, it will move towards the next resistance at 1.0630.
GBP/USD Moves Higher As GDP Report Exceeds Expectations
GBP/USD continues its attempts to settle above the resistance level at 1.2300. Today, traders focused on the economic reports from the UK, which beat analyst expectations and provided some support to the pound.
In case GBP/USD settles above the resistance at 1.2300, it will move towards the next resistance level, which is located at 1.2335. A successful test of this level will open the way to the test of the resistance at 1.2360.
On the support side, the nearest support level for GBP/USD is located at 1.2275. If GBP/USD declines below this level, it will move towards the next support at 1.2245. A move below the support at 1.2245 will push GBP/USD towards the support level at 1.2215.
AUD/USD Tests Support At 0.6750
AUD/USD pulled back towards the 0.6750 level amid a pullback in several commodity markets. NZD/USD has also found itself under pressure and settled below the 0.6400 level.
Meanwhile, USD/CAD is trading near 1.3650. The strong rebound in the oil markets provides some support to the Canadian dollar.
USD/JPY Climbed Above 137
USD/JPY managed to get back above the 137 level and is trying to get to the test of the key resistance at 137.50. In case this attempt is successful, USD/JPY will move towards the next resistance at 138.40.
It remains to be seen whether USD/JPY will be able to gain sustainable upside momentum if the U.S. dollar remains under pressure against a broad basket of currencies.
For a look at all of today’s economic events, check out our economic calendar.