EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Lower Despite Rising Treasury Yields

U.S. Dollar

U.S. Dollar Index is moving lower despite rising Treasury yields. Traders reduce their bets on hawkish Fed despite the strong rally in the equty markets, which may lead to higher inflation. Stock investors may take some profits off the table and use them for personal consumption, boosting prices.

Currently, U.S. Dollar Index is trying to settle below the support at 103.50 – 103.75. In case this attempt is successful, U.S. Dollar Index will head towards the next support level, which is located in the 102.80 – 103.00 range.

EUR/USD

EUR/USD gained some ground as traders reacted to U.S. economic reports. New Home Sales increased by 1.5% month-over-month in January, while Dallas Fed Manufacturing Index improved from -27.4 in January to -11.3 in February.

In case EUR/USD manages to settle above the 1.0850 level, it will move towards the next resistance, which is located in the 1.0900 – 1.0920 range.

GBP/USD

GBP/USD continues its attempts to settle above the resistance at 1.2650 – 1.2685 as traders focus on general weakness of the American currency.

A successful test of this level will open the way to the test of the next resistance at 1.2800 – 1.2825. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

USD/CAD

USD/CAD settled above the 1.3500 level while oil markets rebounded from recent lows. The pullback in precious metals’ markets put pressure on commodity-related currencies, including Canadian dollar.

If USD/CAD climbs above the 1.3500 level, it will move towards the resistance at 1.3600 – 1.3620.

USD/JPY

USD/JPY is slowly moving towards the 151.00 level as traders focus on rising Treasury yields. Bulls stay cautious amid fears of interventions from the BoJ.

In case USD/JPY moves above the 151.00 level, it will head towards the nearest resistance at 151.50 – 152.00. The test of this level may force the BoJ to intervene, but it remains to be seen whether Japan’s central bank is ready to support the yen near current levels.

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