EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – Euro Gains Ground As Euro Area PMI Reports Exceed Expectations

Key Insights

• EUR/USD settled near 1.0900 as traders reacted to the better-than-expected PMI reports. 
• GBP/USD moved higher as UK Services PMI climbed back into the expansion territory. 
• USD/JPY settled above the 149.50 level. 

U.S. Dollar

U.S. Dollar Index is losing some ground in quiet trading. The U.S. is on holiday, so traders have to look elsewhere for catalysts.

From the technical point of view, U.S. Dollar Index received support in the 103.50 – 103.75 range and may try to gain upside momentum.

EUR/USD

EUR/USD moved above the 1.0900 level as traders reacted to the PMI reports from the EU. Euro Area Manufacturing PMI increased from 43.1 in October to 43.8 in November, while Euro Area Services PMI grew from 47.8 to 48.2. Both reports exceeded analyst expectations.

In case EUR/USD settles back above 1.0900, it will get to another test of the nearest resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD gains ground as UK Services PMI moved back into the expansion territory in November. The better-than-expected economic data provides support to the British pound.

From the technical point of view, GBP/USD continues to move towards the nearest resistance at 1.2650 – 1.2685.

USD/CAD

USD/CAD is mostly flat despite the pullback in the oil markets. Other commodity-related currencies are moving higher in today’s trading session.

In case USD/CAD manages to settle above the 1.3700 level, it will head towards the next resistance, which is located in the 1.3800 – 1.3830 range.

USD/JPY

USD/JPY settled back above the 149.50 level and is moving towards the psychologically important 150.00 level.

If USD/JPY climbs above 150.00, it will head towards the nearest resistance at the recent highs at 151.45 – 152.00.

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