EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Lower Ahead Of The Weekend

Key Insights

• EUR/USD climbed towards 1.0600 as traders reacted to Germany’s Producer Prices report. 
• GBP/USD gained some ground despite disappointing Retail Sales data. 
• USD/JPY continued to trade just below the 150.00 level as traders waited for BoJ moves. 

U.S. Dollar

U.S. Dollar Index declines as traders focus on the pullback in Treasury yields. At this point, traders are not ready to increase their bullish bets on U.S. dollar ahead of the weakend.

The nearest support for U.S. Dollar Index is located in the 105.65 – 105.90 range. A move below this range will push U.S. Dollar Index towards the support at 104.50 – 104.75.

EUR/USD

EUR/USD gains ground as traders react to Germany’s PPI report, which indicated that PPI declined by 0.2% month-over-month in September, compared to analyst consensus of +0.4%.

From the technical point of view, EUR/USD continues its attempts to settle above the 1.0600 level. A move above this level will open the way to the test of the resistance at 1.0670 – 1.0700.

GBP/USD

GBP/USD is moving higher despite disappointing Retail Sales data. Retail Sales declined by 0.9% month-over-month in September, compared to analyst consensus of -0.2%.

If GBP/USD manages to settle above the 1.2200 level, it will move towards the resistance at 1.2370 – 1.2410.

USD/CAD

USD/CAD remains stuck near the 1.3700 level. Oil prices pull back, but demand for commodity-related currencies stays stable.

In case USD/CAD settles back above 1.3700, it will head towards the next resistance, which is located in the 1.3800 – 1.3830 range.

USD/JPY

USD/JPY did not test the 150.00 level, although it is very close to this important level. Traders fear that BoJ will intervene if USD/JPY crosses the 150.00 mark.

The technical factors do not play a big role in USD/JPY dynamics right now as the outlook depends on whether BoJ is ready to provide additional support to the Japanese yen.

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