U.S. Dollar Gains Ground As GDP Growth Rate Beats Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

Key Points:

• GBP/USD pulled back towards the 1.2550 level as three BoE members voted for a rate cut.

• USD/CAD declined towards the 1.4350 level amid profit-taking.

• USD/JPY rallied above the 157.50 level as traders focused on dovish comments from the BoJ. ### In this article:

• EUR/USD

+0.06%

• GBP/USD

-0.31%

• USD/CAD

-0.66%

• USD/JPY

+1.97%

U.S. Dollar Tests New Highs As Rally Continues

DXY 191224 4h Chart U.S. Dollar Index continues to move higher as traders react to the better-than-expected GDP Growth Rate report. The report indicated that GDP Growth Rate was 3.1% in the third quarter, compared to analyst forecast of 2.8%.

Currently, U.S. Dollar Index is trying to settle above the resistance at 108.30 – 108.50. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level at 109.40 – 109.60.

EUR/USD Pulls Back As Traders Focus On Strong Dollar

EUR/USD 191224 4h Chart EUR/USD pulled back as traders reacted to Gfk Consumer Confidence report from Germany. The report showed that Consumer Confidence improved from -23.1 in December to -21.3 in January, compared to analyst consensus of -22.5.

In case EUR/USD manages to settle below the 1.0370 level, it will head towards the next support level at 1.0330 – 1.0345.

GBP/USD Retreats After BoE Interest Rate Decision

GBP/USD 191224 4h Chart GBP/USD retreats as traders react to BoE Interest Rate Decision. The BoE left the rate unchanged at 4.75%. However, three members voted for a cut, compared to analyst forecast of one, which was bearish for the pound.

If GBP/USD stays below the support at 1.2575 – 1.2590, it will move towards the next support level at 1.2475 – 1.2490.

USD/CAD Moves Lower Amid Profit-Taking

USD/CAD 191224 4h Chart USD/CAD is losing ground as traders take some profits off the table after the strong rally.

A move below the support at 1.4330 – 1.4350 will push USD/CAD towards the 50 MA at 1.4238.

USD/JPY Rallies As BoJ Remains Dovish

USD/JPY 191224 4h Chart USD/JPY tests new highs as traders focus on the BoJ Interest Rate Decision. The Bank of Japan left the interest rate unchanged at 0.25%. The Bank’s commentary was rather dovish, which was bearish for the Japanese yen.

From the technical point of view, USD/JPY climbed above the resistance at 156.00 – 156.50 and is moving towards the next resistance level, which is located in the 158.50 – 159.00 range.

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