EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As GDP Growth Rate Beats Expectations

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the final reading of GDP Growth Rate report, which indicated that GDP Growth Rate was 3.4% in the fourth quarter. The report exceeded the analyst consensus of +3.2%. Today, traders also focused on the final reading of Michigan Consumer Sentiment report, which indicated that Consumer Sentiment improved from 76.9 in February to 79.4 in March, compared to analyst consensus of 76.5. Pending Home Sales increased by 1.6% month-over-month in February. Chicago PMI decreased from 44 in February to 41.4 in March. Traders have mostly focused on the strong GDP Growth Rate report, which highlighted the strength of the U.S. economy.

U.S. Dollar Index made an attempt to settle above the resistance at 104.40 – 104.60 bu failed to develop sufficient upside momentum. If U.S. Dollar Index manages to settle above the 104.60 level, it will head towards the 105.00 level.

EUR/USD

EUR/USD is losing ground as traders react to the weak Retail Sales data from Germany. Retail Sales declined by 1.9% month-over-month in February, compared to analyst consensus of +0.3%.

In case EUR/USD stays below the 1.0810 level, it will move towards the next support level, which is located in the 1.0700 – 1.0720 range.

GBP/USD

GBP/USD is mostly flat as traders react to the final reading of UK GDP Growth Rate report, which showed that GDP Growth Rate was -0.3% in the fourth quarter. The report met analyst consensus.

In case GBP/USD climbs back above the 1.2650 – 1.2685 level, it will head towards the next resistance at 1.2800 – 1.2825.

USD/CAD

USD/CAD pulls back amid a broad rally in commodity markets. Gold managed to settle above the $2200 level, while WTI oil moved above $82.00.

From the technical point of view, USD/CAD settled below the 50 MA at 1.3565 and is heading towards the support at 1.3480 – 1.3500.

USD/JPY

USD/JPY remains stuck below the key resistance at 151.50 – 152.00. Traders remain worried about potential interventions from the BoJ.

If USD/JPY settles below the 50 MA at 151.10, it will move towards the nearest support level at 149.50 – 150.00.

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