EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Personal Income Exceeds Expectations

U.S. Dollar

U.S. Dollar Index gains ground as traders react to PCE Price Index report, which showed that PCE Price Index remained unchanged at 2.5% on a year-over-year basis in July. Analysts expected that PCE Price Index would grow to 2.6%. Personal Income increased by 0.3% month-over-month in July, compared to analyst consensus of 0.2%. Personal Spending increased by 0.5%, in line with analyst estimates. Today, traders also focused on the final reading of Michigan Consumer Sentiment report, which showed that Consumer Sentiment increased from 66.4 in July to 67.9 in August.

If U.S. Dollar Index stays above the 101.50 level, it will move towards the next resistance at 102.00 – 102.20.

EUR/USD

EUR/USD is losing ground as traders react to the Euro Area inflation reports. Inflation Rate declined from 2.6% in July to 2.2% in August, while Core Inflation Rate decreased from 2.9% to 2.8%.

A move below the 1.1050 level will push EUR/USD towards the next support, which is located in the 1.0980 – 1.1000 range.

GBP/USD

GBP/USD tests support at 1.3120 – 1.3140 as traders continue to take profits after the strong rebound from August lows.

In case this test is successful, GBP/USD will move towards the next support at 1.3030 – 1.3045.

USD/CAD

USD/CAD gained some ground as traders focused on the pullback in commodity markets.

In case USD/CAD settles above the resistance at 1.3480 – 1.3500, it will head towards the next resistance level at 1.3600 – 1.3620.

USD/JPY

USD/JPY is moving higher as traders react to economic reports from Japan. Unemployment Rate increased from 2.5% in June to 2.7% in July, compared to analyst forecast of 2.5%. Retail Sales increased by 2.6% year-over-year in July, while analysts expected that they would grow by 2.9%. The weaker-than-expected reports put pressure on the Japanese yen.

A successful test of the resistance at 146.00 – 146.50 will open the way to the test of the next resistance level at 149.30 – 149.70.

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