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 the Initial Jobless Claims report, which indicated that 238,000 Americans filed for unemployment benefits in a week. Housing Starts declined by 5.5% month-over-month in May, compared to analyst consensus of +0.7%. Building Permits decreased by 3.8%, while analysts expected that they would grow by 0.7%. Treasury yields have started to rebound from recent lows, providing additional support to the American currency.

In case U.S. Dollar Index manages to settle above the nearest resistance at 105.75 – 106.00, it will head towards the next resistance level, which is located in the 106.60 – 106.80 range.

EUR/USD

EUR/USD pulls back as traders react to the Euro Area Consumer Confidence report. The report indicated that Consumer Confidence improved from -14.3 in May to -14 in June, compared to analyst consensus of -13.6.

Currently, EUR/USD is trying to settle below the support at 1.0710 – 1.0725. In case this attempt is successful, EUR/USD will move towards the next support level at 1.0600 – 1.0620.

GBP/USD

GBP/USD is losing some ground after BoE Interest Rate Decision. The Bank of England left the rate unchanged at 5.25%. It should be noted that two members voted for a rate cut.

In case GBP/USD declines below the support at 1.2670 – 1.2700, it will head towards the next support level at 1.2550 – 1.2575.

USD/CAD

USD/CAD is mostly flat as the strong rally in precious metals markets provides support to commodity-related currencies, including Canadian dollar.

The technical picture remains unchanged as USD/CAD did not manage to settle below the 1.3700 level.

USD/JPY

USD/JPY tests new highs as traders focus on general strength of the U.S. dollar. Importantly, there are no signs of interventions from the BoJ.

If USD/JPY settles above the resistance at 158.00 – 158.50, it will head towards the 160.00 level.

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