EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Rebound Continues

U.S. Dollar

U.S. Dollar Index gains ground as the rebound continues. Treasury yields are moving higher, providing additional support to the American currency.

The nearest resistance for U.S. Dollar Index is located in the 104.40 – 104.60 range. In case U.S. Dollar Index climbs above the 104.60 level, it will head towards the next resistance at 105.90 – 106.10.

EUR/USD

EUR/USD is losing some ground as traders react to Germany’s PPI report. PPI declined by 1.6% year-over-year in June, in line with analyst consensus.

In case EUR/USD settles below the 50 MA at 1.0882, it will move towards the nearest support level, which is located in the 1.0785 – 1.0800 range.

GBP/USD

GBP/USD is moving lower as traders focus on the weak Retail Sales data from the UK. Retail Sales declined by 1.2% month-over-month in June, compared to analyst consensus of -0.4%. Retail Sales ex Fuel decreased by 1.5%, while analysts expected that they would decline by 0.5%.

A move below the support at 1.2880 – 1.2900 will open the way to the test of the next support level at 1.2780 – 1.2800.

USD/CAD

USD/CAD continues to move higher as traders focus on the pullback in commodity markets.

If USD/CAD climbs above the 1.3750 level, it will head towards the resistance at 1.3785 – 1.3800.

USD/JPY

USD/JPY is mostly flat despite rising Treasury yields. Today, traders had a chance to take a look at Japan’s inflation data. Inflation Rate remained unchanged at 2.8%, in line with analyst expectations. Core Inflation Rate increased from 2.5% to 2.6%, compared to analyst consensus of 2.7%. It remains to be seen whether BoJ will change its ultra-dovish policy as inflation remains under control.

The nearest resistance level for USD/JPY is located in the 158.00 – 158.50 range. A move above 158.50 will push USD/JPY towards the resistance at 160.00 – 160.50.

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