U.S. Dollar Pulls Back Ahead of Fed Decision: Key Insights for EUR/USD, GBP/USD, USD/CAD, USD/JPY

Wednesday, 18 September 2024, 09:32

U.S. Dollar is pulling back as traders anticipate the Fed decision affecting EUR/USD, GBP/USD, USD/CAD, and USD/JPY. Key economic indicators have emerged, prompting market reactions. Traders are keenly focused on interest rate decisions and upcoming comments from Powell.
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U.S. Dollar Pulls Back Ahead of Fed Decision: Key Insights for EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back Ahead of Critical Fed Decision

The U.S. Dollar is losing ground as traders await the Fed interest rate decision. The DXY index is experiencing a pullback influenced by recent economic reports.

Key Economic Indicators

  • Building Permits increased by 4.9%, surpassing the 1.1% forecast.
  • Housing Starts grew by 9.6%, beating the expected 3.2%.

Traders are focused on upcoming Fed announcements, which are likely to create significant movements in the forex market dynamics.

EUR/USD Analysis

The EUR/USD pair is trying to secure a position above the 1.1110 – 1.1135 resistance zone amidst fluctuating market reactions to the Euro Area Inflation Rates.

GBP/USD Insights

The GBP/USD experienced fluctuations following an attempt to break the 1.3245 – 1.3265 resistance. The unchanged inflation rate at 2.2% saw the Core Inflation rise to 3.6%.

USD/CAD and USD/JPY Outlook

USD/CAD remains near 1.3600 as it awaits crucial decisions, while USD/JPY tests the 142.50 resistance but faces downward pressures.

Traders should keep an eye on today’s economic calendar for all relevant events.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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