Market Analysis Summary - February 20, 2026

In the latest market analysis, the U.S. Dollar has retreated from session highs following a significant ruling by the U.S. Supreme Court, which determined that former President Trump exceeded his authority in imposing tariffs. This decision has led to a shift in market sentiment, particularly affecting currency pairs such as EUR/USD, GBP/USD, USD/CAD, and USD/JPY.

Key Highlights:

• U.S. Dollar Index: The index is losing ground and is attempting to settle below the 97.70 level. A successful move below this level could lead to further declines towards the 97.10 – 97.35 range.
• EUR/USD: The pair gained ground as traders reacted positively to the Euro Area Composite PMI report, which showed an increase from 51.3 in January to 51.9 in February, surpassing analyst expectations. If EUR/USD can settle above the 1.1785 level, it may target the next resistance at 1.1835 – 1.1850.
• GBP/USD: This pair is also moving higher, testing resistance at 1.3485 – 1.3500, driven by the Supreme Court decision and positive PMI data from the UK. A breakout above this resistance could lead to further gains towards 1.3565 – 1.3580.
• USD/CAD: Despite a strong rally in precious metals, USD/CAD is moving higher, remaining range-bound between 1.3665 and 1.3710. The nearest significant resistance is at 1.3725 – 1.3740.
• USD/JPY: The pair is settling near the 155.00 level as traders focus on Japan's inflation data, which showed a decline to 1.5%. If USD/JPY can settle above 155.00, it may target the next resistance at 158.00 – 158.50.

Market Reactions:

The market is reacting to various economic indicators, including the GDP Growth Rate report for Q4, which came in at +1.4%, significantly below the forecast of +3%. This has contributed to the bearish sentiment surrounding the U.S. Dollar.

Technical Analysis:

From a technical perspective, the movements in the currency pairs indicate potential bullish reversals for EUR/USD and GBP/USD, while USD/CAD remains in a tight range. The USD/JPY pair's performance is closely tied to inflation data, which could influence the Bank of Japan's monetary policy decisions moving forward.

Conclusion:

The recent Supreme Court ruling has had a notable impact on the U.S. Dollar and various currency pairs. Traders are advised to monitor upcoming economic data releases and technical levels for potential trading opportunities.