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

Key Insights

• EUR/USD is moving towards the 1.0900 level as traders focus on dollar’s weakness. 
• USD/CAD pulls back as oil markets rebound after the strong sell-off. 
• USD/JPY declined below the key 150.00 level. 

U.S. Dollar

U.S. Dollar Index pulls back as traders react to the better-than-expected Building Permits and Housing Starts reports. While the strong reports may have provided some support to the American currency, the general market sentiment remains bearish.

From the technical point of view, U.S. Dollar Index continues its attempts to settle below the 104.00 level. A successful test of this level will open the way to the test of the support at 103.50 – 103.75.

EUR/USD

EUR/USD is moving higher as traders react to the final reading of the Euro Area Inflation Rate report, which showed that Inflation Rate declined from 4.3% in September to 2.9% in October.

If EUR/USD climbs above the 1.0900 level, it will get to the test of the resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD settled back above the 1.2400 level as traders reacted to the UK Retail Sales report, which showed that Retail Sales declined by 0.3% month-over-month in October. Analysts expected that Retail Sales would grow by 0.3%.

If GBP/USD moves above the 1.2450 level, it will head towards the recent highs near 1.2500.

USD/CAD

USD/CAD is losing some ground as oil markets rebound after the major sell-off, providing support to commodity-related currencies.

The nearest support level for USD/CAD is located in the 1.3675 – 1.3700 range. A move below 1.3675 will push USD/CAD towards the next support at 1.3570 – 1.3600.

USD/JPY

USD/JPY pulled back below the 150.00 level as traders focused on the general weakness of the U.S. dollar.

At this point, it looks that USD/JPY may be ready to test the key support level, which is located in the 148.00 – 149.00 range.

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