Post-inflation dollar slump drives EUR/USD and GBP/USD while knocking back USD/CAD
Weakening US inflation prompted a rout in the US dollar yesterday and boosted the euro, sterling and the Canadian dollar.
![CAD](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/BG-CAD-Canadian-Dollar-loonie.jpg/jcr:content/renditions/original-size.webp)
EUR/USD at ten-week high
The dollar weakened with EUR/USD following US inflation data on Tuesday, which showed weaker-than-expected price growth in October.
The pair rallied sharply, moving back above the 100- and 200-day simple moving averages (SMA). This took it to its highest level since late August, with the $1.092 resistance area now a possible target in the short term.
Beyond this the $1.1033 level comes into view, and it would need a drop back below $1.07 to indicate a short-term reversal, though the series of higher lows since the end of September would need to be broken to bolster the bearish view.
![EUR/USD chart](http://a.c-dn.net/c/content/dam/igcom-websites/en_GB/charts/2023/11/15/EURUSD_151123.png/jcr:content/renditions/original-size.webp)
GBP/USD trims gains after UK CPI
The US inflation print delivered a huge bounce in GBP/USD, and the drop in UK inflation only caused a slight weakening in sterling in early trading.
The pair shot to its highest level since mid-September, rallying back above the 200-day SMA. This would tend to reinforce the view that a new rally is underway. Further gains would then take the price on towards $1.267.
A reversal back below $1.23 would be needed to dent this bullish view, but even then trendline support from the October low could soon come into play.
![GBP/USD chart](http://a.c-dn.net/c/content/dam/igcom-websites/en_GB/charts/2023/11/15/GBPUSD_151123.png/jcr:content/renditions/original-size.webp)
USD/CAD heads lower
The US inflation reading delivered a severe check to USD/CAD's rally, resulting in a lower high above C$1.38 and a break below one trendline support line.
The pair now finds itself testing more trendline support, and then on towards the 50-day SMA in the event of further downside. For now the medium-term uptrend is in place, though a close below C$1.36 would put further pressure on that view.
Bulls will need to see support hold and then a move back above C$1.37 to point towards a case for renewed upside.
![USD/CAD chart](http://a.c-dn.net/c/content/dam/igcom-websites/en_GB/charts/2023/11/15/USDCAD_151123.png/jcr:content/renditions/original-size.webp)
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