EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat As Traders Wait For Catalysts

Key Insights

• EUR/USD gained some ground as traders reacted to the weak Industrial Production report from Germany. 
• GBP/USD settled above the 1.2600 level as Halifax House Price Index exceeded analyst expectations. 
• USD/JPY settled near the 148.00 level. 

U.S. Dollar

U.S. Dollar Index is mostly flat as traders wait for catalysts. Treasury yields are mostly unchanged today.

The nearest resistance level for U.S. Dollar Index is located in the 104.35 – 104.55 range. A move above 104.55 will open the way to the test of the next resistance at 105.75 – 106.00.

EUR/USD

EUR/USD gained some ground despite the disappointing Industrial Production report from Germany. The report indicated that Industrial Production declined by 1.6% month-over-month in December, compared to analyst consensus of -0.4%.

From the technical point of view, EUR/USD received support in the 1.0730 – 1.0750 range and is moving towards the nearest resistance at 1.0810 – 1.0830.

GBP/USD

GBP/USD is moving higher as the rebound conitnues. Today, traders focused on Halifax House Price Index report, which showed that house prices increased by 1.3% month-over-month in January.

GBP/USD needs to settle above the nearest resistance at 1.2650 – 1.2685 to gain additional upside momentum.

USD/CAD

USD/CAD is losing some ground as oil markets continue to rebound after the recent pullback.

If USD/CAD stays below the 1.3480 level, it will move towards the next support at 1.3380 – 1.3410.

USD/JPY

USD/JPY consolidates above the 148.00 level. The Japanese yen remains fundamentally weak due to the ultra-dovish policy of the BoJ. Japan’s central bank is not expected to change its policy in the near term, so traders will remain focused on the dynamics of Treasury yields.

If USD/JPY stays above the nearest support at 147.00 – 147.50, it will head towards the resistance at 149.50 – 150.00.

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