EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back Ahead Of Fed Decision

U.S. Dollar

U.S. Dollar Index pulls back ahead of Fed decision. Today, traders also focused on economic reports. ISM Manufacturing PMI declined from 50.3 in March to 49.2 in April, compared to analyst consensus of 50.0. JOLTs Job Openings decreased from 8.76 million in February to 8.49 million in March. The final reading of S&P Global Manufacturing PMI report showed that Manufacturing PMI decreased from 51.9 in March to 50.0 in April, compared to analyst forecast of 49.9. The reports did not have a material impact on U.S. dollar dynamics as traders waited for Fed decision.

Technical catalysts will take a back seat today as traders will react to Fed decision and Powell’s comments.

EUR/USD

EUR/USD gains some ground as traders focus on the economic data from the U.S. There are no important economic reports scheduled to be released in the EU today due to Labour Day.

In case EUR/USD climbs above the resistance at 1.0700 – 1.0720, it will head towards the next resistance level, which is located at 1.0785 – 1.0800.

GBP/USD

GBP/USD is losing some ground as traders prepare for the key event of the week, which will have a major impact on forex market dynamics.

In case GBP/USD climbs above the 1.2500 level, it will get to the test of the nearest resistance at 1.2530 – 1.2550.

USD/CAD

USD/CAD pulls back as traders focus on the rebound in precious metals markets. The sell-off in the oil markets did not put pressure on the Canadian dollar.

From the technical point of view, USD/CAD needs to settle above the resistance at 1.3785 – 1.3800 to gain additional upside momentum.

USD/JPY

USD/JPY is stabilizing after recent volatility. Bulls are cautious as USD/JPY is slowly moving towards the 160.00 level, which may force the BoJ to intervene.

The nearest resistance for USD/JPY is located in the 158.00 – 158.50 range. A move above this level will push USD/JPY towards the key resistance level at 159.50 – 160.00.

For a look at all of today’s economic events, check out our economic calendar.