EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds From Multi-Week Lows

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the Initial Jobless Claims report. The report indicated that 243,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 230,000. Traders also had a chance to take a look at Philadelphia Fed Manufacturing Index report for July. The report showed that Philadelphia Fed Manufacturing Index increased from 1.3 in June to 13.9 in July, compared to analyst consensus of 2.9.

In case U.S. Dollar Index climbs above the 104.00 level, it will head towards the nearest resistance at 104.40 – 104.60.

EUR/USD

EUR/USD pulls back as traders react to ECB Interest Rate Decision. The ECB left the interest rate unchanged at 4.25%, in line with analyst expectations. Talking about the next decision in September, President Lagarde said that it was “wide open” but highlighted downside risks to economic growth.

In case EUR/USD settles below the support at 1.0900 – 1.0915, it will move towards the next support level at 1.0785 – 1.0800.

GBP/USD

GBP/USD is moving lower as traders focus on UK Unemployment Rate report, which indicated that Unemployment Rate remained unchanged at 4.4% in May. From a big picture point of view, traders take profits near multi-month highs.

If GBP/USD settles below the 1.2980 level, it will move towards the nearest support, which is located in the 1.2880 – 1.2900 range.

USD/CAD

USD/CAD is moving higher as traders focus on the pullback in precious metals markets. Other commodity-related currencies are also losing ground in today’s trading session.

From the technical point of view, USD/CAD needs to settle above the 1.3700 level to have a chance to gain upside momentum in the near term.

USD/JPY

USD/JPY rebounds as traders focus on rising Treasury yields and general strength of the American currency.

A move above the 157.00 level will open the way to the test of the resistance at 158.00 – 158.50.

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