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

U.S. Dollar

U.S. Dollar Index gains ground as traders react to U.S. economic reports. Initial Jobless Claims remained unchanged at 212,000, compared to analyst consensus of 215,000. Philadelphia Fed Manufacturing Index increased from 3.2 in March to 15.5 in April, while analysts expected that it would decrease to 1.5. Existing Home Sales declined by 4.3% month-over-month in March. Treasury yields are moving higher, providing additional support to the American currency.

U.S. Dollar Index received support in the 105.75 – 106.00 range and is trying to gain additional upside momentum. In case this attempt is successful, it will head towards the recent highs near the 106.50 level.

EUR/USD

EUR/USD pulls back as traders focus on rising Treasury yields. The fundamental picture remains bearish for the euro as ECB will likely start cutting rates before the Fed.

A move below the 1.0650 level will push EUR/USD towards the nearest support at 1.0600 – 1.0625.

GBP/USD

GBP/USD is mostly flat as traders wait for additional catalysts. From the technical point of view, GBP/USD received strong support in the 1.2425 – 1.2450 range.

If GBP/USD climbs above the 1.2500 level, it will head towards the resistance at 1.2530 – 1.2550.

USD/CAD

USD/CAD is losing some ground as precious metals markets move higher. Other commodity-related currencies are mostly flat in today’s trading session.

In case USD/CAD settles below the 1.3750 level, it will gain additional downside momentum and move towards the 50 MA at 1.3710.

USD/JPY

USD/JPY continues its attempts to settle above the key resistance level at 154.50 – 155.00.

RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case USD/JPY climbs above 155.00. The Japanese yen is fundamentally weak, and potential interventions from the BoJ are the key risk for USD/JPY bulls in the near term.

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