EUR/USD: The euro rose on Wednesday as the dollar fell after the publication of U.S. inflation data. U.S. consumer prices rose in September as Americans paid more for food, rent and a range of other goods, putting pressure on the Biden administration to resolve strained supply chains, which are hampering economic growth. The consumer price index rose 0.4% last month after climbing 0.3% in August. Food prices jumped 0.9% after increasing 0.4% in the previous month. The largest rise in food prices since April 2020 was driven by a surge in the cost of meat. In case of further decline in the dollar, the euro’s growth may continue. Immediate resistance can be seen at 1.16. A breakout to the upside can trigger growth towards 1.1650.
USD/CAD: The Canadian dollar edged higher against the U.S. dollar on Wednesday, but gains were capped ahead of a 2-month high that was notched the day before. The Canadian dollar was supported by the rise in oil prices, the weakness of the dollar, as well as the decline in the U.S. Treasury yield. On Tuesday, the currency touched its strongest level since July 30 at 1.2430. With the news background unchanged, traders will keep selling off the pair. Immediate support is seen at 1.24. A breakout below could take the pair towards 1.23.
GBP/USD: Sterling edged higher on Wednesday as traders assessed that data showing the British economy grew slightly below consensus in August was not enough to dent expectations that the Bank of England will raise interest rates. Britain’s economy grew 0.4% in August, leaving it just 0.8% smaller than it was in February 2020. Economists polled by Reuters had forecast monthly gross domestic product growth of 0.5% for August. Immediate resistance can be seen at 1.3680. A breakout to the upside can trigger growth towards 1.3750.