EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds From Session Lows As Treasury Yields Rise

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the weaker-than-expected ISM Manufacturing PMI report, which indicated that ISM Manufacturing PMI declined from 48.7 in May to 48.5 in June. The final reading of S&P Global Manufacturing PMI report showed that Manufacturing PMI improved from 51.3 in May to 51.6 in June. Treasury yields are moving higher, providing additional support to the American currency.

Currently, U.S. Dollar Index is trying to settle above the resistance at 105.75 – 106.00. In case this attempt is successful, U.S. Dollar Index will move towards the next support level at 106.60 – 106.80.

EUR/USD

EUR/USD pulls back as traders focus on the final reading of the Euro Area Manufacturing PMI report, which indicated that Manufacturing PMI declined from 47.3 in May to 45.8 in June, compared to analyst consensus of 45.6. Germany’s Inflation Rate declined from 2.4% in May to 2.2% in June, which was bearish for the euro.

A successful test of the support at 1.0710 – 1.0725 will push EUR/USD towards the next support level at 1.0600 – 1.0620.

GBP/USD

GBP/USD is mostly flat in a volatile trading session. UK Manufacturing PMI declined from 51.2 in May to 50.9 in June, while analysts expected that it would increase to 51.4.

GBP/USD has recently made an attempt to settle above the resistance at 1.2670 – 1.2700 but lost momentum and pulled back. In case GBP/USD manages to settle below 1.2650, it will move towards the support level at 1.2550 – 1.2575.

USD/CAD

USD/CAD gains ground despite rising oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the 1.3750 level will open the way to the test of the strong resistance at 1.3785 – 1.3800.

USD/JPY

USD/JPY tests new highs as traders focus on rising Treasury yields. There are no signs of interventions from the BoJ, which is bearish for the yen.

RSI is close to the overbought territory but there is enough room to gain momentum in case the right catalysts emerge.

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