EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground Despite Weak PMI Data

U.S. Dollar

U.S. Dollar Index gains some ground as traders react to PMI reports. ISM Manufacturing PMI increased from 46.8 in July to 47.2 in August, compared to analyst consensus of 47.5. S&P Global Manufacturing PMI pulled back from 49.6 to 47.9, compared to analyst forecast of 48. Both reports missed analyst expectations but did not put material pressure on the American currency. It looks that U.S. dollar received some support from safe-haven buyers amid strong pullback in commodity markets.

Currently, U.S. Dollar Index is moving towards the resistance at 102.00 – 100.20. A move above the 102.20 level will push U.S. Dollar Index towards the next resistance at 103.40 – 103.60.

EUR/USD

EUR/USD is losing ground as traders react to U.S. economic reports. There are no important economic reports scheduled to be released in the EU today, so traders will stay focused on general market sentiment.

In case EUR/USD stays below the 1.1050 level, it will head towards the nearest support at 1.0980 – 1.1000.

GBP/USD

GBP/USD continues its attempts to settle below the strong support level at 1.3120 – 1.3140. RSI is in the moderate territory, so there is enough room to gain additional downside momentum in the near term.

If GBP/USD moves below the 1.3100 level, it will head towards the next support, which is located in the 1.3025 – 1.3045 range.

USD/CAD

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

A move above the 1.3550 level will open the way to the test of the next resistance at 1.3600 – 1.3620.

USD/JPY

USD/JPY moved lower as traders reacted to the pullback in Treasury yields, which was triggered by weaker-than-expected U.S. PMI reports.

A move below the 50 MA at 145.25 will push USD/JPY towards the support at 141.80 – 142.50.

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