U.S. Dollar

DXY
DXY 140824 4h Chart

U.S. Dollar Index is losing some ground as traders react to inflation data. Inflation Rate declined from 3% in June to 2.9% in July, compared to analyst consensus of 3%. Core Inflation Rate decreased from 3.2% to 3.3%, in line with analyst expectations. The recent reports showed that inflation remained under control, which is bearish for the U.S. dollar as Fed may start cutting rates aggressively.

In case U.S. Dollar Index stays below the 102.50 level, it will head towards the nearest support, which is located in the 102.00 – 102.20 range.

EUR/USD

EUR/USD
EUR/USD 140824 4h Chart

EUR/USD tests new highs as traders focus on the second estimate of the Euro Area GDP Growth Rate report. The report showed that GDP Growth Rate was 0.3%, in line with analyst consensus.

In case EUR/USD manages to settle above the 1.1000 level, it will head towards the next resistance, which is located in the 1.1110 – 1.1135 range.

GBP/USD

GBP/USD
GBP/USD 140824 4h Chart

GBP/USD pulls back as traders focus on the inflation data from the UK. Inflation Rate increased from 2% to 2.2%, compared to analyst consensus of 2.3%. Core Inflation Rate declined from 3.5% to 3.3%, while analysts expected that it would drop to 3.4%.

If GBP/USD stays below the 1.2850 level, it may gain downside momentum and move towards the nearest support level at 1.2780 – 1.2800.

USD/CAD

USD/CAD
USD/CAD 140824 4h Chart

USD/CAD is mostly flat despite the strong pullback in commodity markets. Other commodity-related currencies have found themselves under pressure in today’s trading session.

If USD/CAD climbs back above the 1.3750 level, it will head towards the nearest resistance, which is located in the 1.3785 – 1.3800 range.

USD/JPY

USD/JPY
USD/JPY 140824 4h Chart

USD/JPY remains stuck near the 147.00 level as traders wait for additional catalysts. It looks that USD/JPY found new equilibrium levels after recent volatility.

In case USD/JPY moves above the 147.50 level, it will head towards the resistance at 149.30 – 149.70.

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