U.S. Dollar Is Swinging Between Gains And Losses Ahead Of The Weekend
U.S. dollar is mostly flat against a broad basket of currencies after the release of economic data. Core PCE Price Index matched expectations, while New Home Sales have surprisingly increased by 5.8% in November.
The reports did not have a big impact on the dynamics of the U.S. dollar as traders are not ready for big moves ahead of Christmas.
GBP/USD Tries To Rebound After The Recent Pullback
GBP/USD made an attempt to settle above 1.2090 but lost momentum and pulled back towards the 1.2060 level amid a lack of catalysts for the British pound.
UK government bond yields continue to move higher amid worries about the health of the UK economy, which is hit by the energy crisis. This month, the yield of 10-year UK government bonds increased from 3.00% to 3.60% level. If the current trend continues in the upcoming weeks, it will catch attention of forex traders.
EUR/USD Lacks Dynamics As Traders Wait For Catalysts
EUR/USD remains stuck in the 1.0600 – 1.0660 range. Today, traders had a chance to take a look at Italy’s Consumer Confidence report, which indicated that Consumer Confidence improved from 98.1 in November to 102.5 in December.
The report had no impact on EUR/USD dynamics. It remains to be seen whether EUR/USD will be able to get out of the current trading range in absence of strong catalysts.
USD/CAD Tests Support At 1.3580
USD/CAD settled below the 1.3600 level as WTI oil moved towards $79.50.
Currently, USD/CAD is trying to settle below the support at 1.3580. In case this attempt is successful, USD/CAD will move towards the next support level at 1.3540. A successful test of this level will push USD/CAD towards the support at 1.3500.
On the upside, a move above 1.3600 will push USD/CAD towards the resistance at 1.3640. If USD/CAD gets back above this level, it will head towards the next resistance level at 1.3675.
Other commodity-related currencies have also enjoyed strong support today. AUD/USD moved back above the 0.6700 level, while NZD/USD rebounded towards 0.6300.
USD/JPY Tested The 133 Level
USD/JPY made an attempt to settle above the 133 level as traders focused on Japan’s Inflation Rate report, which missed analyst expectations. Inflation Rate increased from 3.7% in October to 3.8% in November, compared to analyst consensus of 3.9%. From a big picture point of view, USD/JPY continues to rebound after the strong sell-off, but it remains to be seen whether it will be able to develop sustainable upside momentum.
For a look at all of today’s economic events, check out our economic calendar.
