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

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the strong GDP Growth Rate report. The report showed that GDP Growth Rate was 3% in the second quarter, compared to analyst forecast of 2.8%. Initial Jobless Claims report indicated that 231,000 Americans filed for unemployment benefits in a week, mostly in line with analyst consensus. Today, traders also had a chance to take a look at the Pending Home Sales report, which showed that Pending Home Sales declined by 5.5% month-over-month in July.

In case U.S. Dollar Index manages to settle above the 101.50 level, it will move towards the nearest resistance at 102.00 – 102.20.

EUR/USD

EUR/USD pulls back as traders focus on Germany’s inflation data. Inflation Rate declined from 2.3% in July to 1.9% in August, compared to analyst consensus of 2.1%. Traders bet that ECB will continue to cut rates to provide support to the economy.

If EUR/USD stays below the support at 1.1110 – 1.1135, it will move towards the next support level, which is located in the 1.0980 – 1.1000 range.

GBP/USD

GBP/USD is mostly flat despite rising Treasury yields. It looks that traders use the recent pullback as an opportunity to increase their long positions.

In case GBP/USD settles back above the 1.3200 level, it will head towards the nearest resistance at 1.3280 – 1.3300.

USD/CAD

USD/CAD is losing some ground, supported by the rebound in commodity markets. Other commodity-related currencies are also moving higher in today’s trading session.

A move below the 1.3450 level will open the way to the test of the support at 1.3360 – 1.3380.

USD/JPY

USD/JPY gained some ground as traders focused on rising Treasury yields. From a big picture point of view, USD/JPY is trying to rebound after the recent pullback.

In case USD/JPY settles above the 145.00 level, it will move towards the resistance at 146.00 – 146.50.

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