EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As ADP Report Misses Estimates

U.S. Dollar

U.S. Dollar Index is losing ground as traders react to ISM Services PMI report, which indicated that ISM Services PMI increased from 51.4 in July to 51.5 in August. S&P Global Services PMI improved from 55.0 to 55.7. Both reports exceeded analyst estimates. Today, traders also had a chance to take a look at the ADP Employment Change report for August. The report showed that private businesses added 99,000 jobs, compared to analyst consensus of +145,000.

If U.S. Dollar Index manages to settle below the nearest support at 100.80 – 101.00, it will move towards the next support level, which is located in the 99.55 – 99.75 range.

EUR/USD

EUR/USD gains ground as traders focus on Germany’s Factory Orders report, which showed that Factory Orders increased by 2.9% month-over-month in July. Euro Area Retail Sales grew by 0.1% in July, in line with analyst consensus.

A successful test of the resistance at 1.1110 – 1.1135 will push EUR/USD towards the next resistance level at 1.1250 – 1.1275.

GBP/USD

GBP/USD is moving higher as the rebound continues. RSI is in the moderate territory, so there is plenty of room to gain additional momentum.

In case GBP/USD stays above the 50 MA at 1.3166, it will head towards the nearest resistance level at 1.3280 – 1.3300.

USD/CAD

USD/CAD gains some ground despite rising demand for commodity-related currencies.

A move above the 1.3550 level will open the way to the test of the nearest resistance, which is located in the 1.3600 – 1.3620 range.

USD/JPY

USD/JPY remains under pressure as traders focus on the pullback in Treasury yields. The yield of 2-year Treasuries settled near 3.75%, while the yield of 10-year Treasuries moved towards the 3.74% level.

From the technical point of view, USD/JPY is heading towards the nearest support level at 141.80 – 142.50.

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