EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Treasury Yields Test Multi-Week Highs

U.S. Dollar

U.S. Dollar Index gains ground as Treasury yields rise. Bond traders are worried about hawkish Fed, which is bullish for the American currency.

In case U.S. Dollar Index settles above the 105.00 level, it will head towards the nearest resistance, which is located in the 105.75 – 106.00 range.

EUR/USD

EUR/USD pulls back as traders react to Germany’s inflation data. Inflation Rate increased by 0.1% month-over-month in May, compared to analyst consensus of +0.2%. On a year-over-year basis, Inflation Rate increased from 2.2% to 2.4%, in line with analyst estimates.

The nearest support level for EUR/USD is located in the 1.0785 – 1.0800 range. In case EUR/USD declines below the 1.0785 level, it will head towards the next support at 1.0710 – 1.0725.

GBP/USD

GBP/USD is moving lower as traders take some profits off the table after the strong move from April lows.

In case GBP/USD declines below the support at 1.2670 – 1.2700, it will head towards the next support at 1.2580 – 1.2600.

USD/CAD

USD/CAD gains ground as traders focus on the pullback in commodity markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the 1.3700 level opens the way to the test of the nearest resistance, which is located in the 1.3785 – 1.3800 range.

USD/JPY

USD/JPY tests new highs as traders focus on rising Treasury yields. The ultra-dovish policy of the BoJ remains the key bearish catalyst for the Japanese yen. At this point, it looks that potential interventions from the BoJ are the only bearish catalyst for USD/JPY.

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 160.00 level. Traders should be cautious as BoJ may intervene to support the yen somewhere in the 158.00 – 160.00 range.

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