FXEmpire.com –
Key Insights
- EUR/USD settled back above the 1.0900 level.
- GBP/USD moved above 1.2700.
- USD/JPY pulled back amid profit-taking.
U.S. Dollar
DXY 300623 4h Chart
U.S. Dollar Index pulled back as traders reacted to the PCE Price Index report, which indicated that PCE Price Index declined from 4.3% in April to 3.8% in May. PCE Price Index is Fed’s favorite inflation gauge, and its decline is bearish for the U.S. dollar.
In case U.S. Dollar Index moves back below the 50 MA at 102.70, it will head towards the support level at the recent lows at 102.00 – 102.15.
EUR/USD
EUR/USD 300623 4h Chart
EUR/USD gains ground, supported by the PCE Price Index report. Today, traders also focused on the inflation reports from the EU. Euro Area Inflation Rate declined from 6.1% in May to 5.5% in June, while Euro Area Core Inflation Rate increased from 5.3% to 5.4%.
If EUR/USD manages to settle above the 1.0935 level, it will gain additional momentum and move towards the 1.1000 level.
GBP/USD
GBP/USD 300623 4h Chart
GBP/USD rebounds as traders react to the GDP report from the UK, which showed that GDP increased by 0.1% in the first quarter. The report met analyst estimates.
U.S. dollar’s weakness served as the main bullish catalyst for GBP/USD in today’s trading session. Hower, GBP/USD may face some resistance near the 50 MA at 1.2710.
USD/CAD
USD/CAD 300623 4h Chart
USD/CAD pulled back as oil markets continued to rebound from recent lows. Traders also focused on Canada’s GDP report, which showed that GDP increased by 0.4% month-over-month in May, compared to analyst consensus of 0.0%.
From the technical point of view, USD/CAD remains stuck near the resistance level at 1.3240 – 1.3265. USD/CAD will not be able to settle above this level in case the U.S. dollar remains under pressure against a broad basket of currencies.
USD/JPY
USD/JPY 300623 4h Chart
USD/JPY made an attempt to settle above the 145.20 level but failed to develop sufficient upside momentum and pulled back.
USD/JPY 300623 Daily Chart
USD/JPY will likely need additional catalysts to move above the 145.20 level as RSI remains in the overbought territory while traders want to take profits after the strong rally.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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