EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Mostly Flat After Chicago PMI Report

Key Insights

• EUR/USD settled near 1.1050 in quiet trading. 
• USD/CAD moved back towards the 1.3200 level as oil markets rebounded from session lows. 
• USD/JPY continued its attempts to settle below the important support level at 141.00 – 141.50.

U.S. Dollar

U.S. Dollar Index is mostly flat as traders react to Chicago PMI report, which showed that Chicago PMI declined from 55.8 in November to 46.9 in December.

In case U.S. Dollar index moves above the recent highs near 101.40, it will head towards the resistance at 101.75 – 102.00.

EUR/USD

EUR/USD is swinging between gains and losses as traders are not ready for big moves in the last trading session of the year.

The nearest support level for EUR/USD is located in the 1.1015 – 1.1035 range. If EUR/USD settles below 1.1015, it will have a good opportunity to gain additional downside momentum.

GBP/USD

GBP/USD is flat as traders react to the Nationwide Housing Prices report, which showed that housing prices remained unchanged in December, in line with the analyst consensus.

Most likely, GBP/USD will not be able to gain momentum in the remaining hours and traders will wait for the new year to initiate positions.

USD/CAD

USD/CAD pulled back towards the 1.3200 level as oil markets rebounded from session lows. Other commodity-related currencies were mostly flat in today’s trading session.

A move below the 1.3200 level will push USD/CAD towards the nearest support at 1.3125 – 1.3150.

USD/JPY

USD/JPY continues its attempts to settle below the support at 141.00 – 141.50 as traders bet on dovish Fed.

In case USD/CAD settles below the 141.00 level, it will gain additional downside momentum and move towards the next support at 138.50 – 139.00.

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