EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats As Rate Cut Bets Grow

U.S. Dollar

U.S. Dollar Index pulls back as traders react to economic reports. Housing Starts increased by 3.0% month-over-month in June, compared to analyst consensus of +3.1%. Building Permits grew by 3.4%, while analysts expected that they would increase by 0.5%. Industrial Production increased by 0.6% on a month-over-month basis, compared to analyst forecast of +0.3%.

In case U.S. Dollar Index pulls back below the support at 103.50 – 103.75, it will move towards the next support level, which is located in the 102.35 – 102.65 range.

EUR/USD

EUR/USD gains ground as traders react to the final reading of the Euro Area inflation report for June, which met analyst estimates. From a big picture point of view, traders have already started to prepare for the beginning of the Fed rate cut cycle.

In case EUR/USD manages to stay above the resistance at 1.0900 – 1.0915, it will head towards the next resistance level, which is located in the 1.1000 – 1.1015 range.

GBP/USD

GBP/USD is trying to settle above the 1.3000 level as traders react to inflation data from the UK. Inflation Rate remained unchanged at 2% in June, compared to analyst consensus of 1.9%. Core Inflation Rate was 3.5%, in line with analyst consensus.

If GBP/USD settles above the 1.3000 level, it will move towards the resistance at 1.3125 – 1.3140.

USD/CAD

USD/CAD gains some ground as precious metals markets pull back amid profit-taking.

A move above the 1.3700 level will push USD/CAD towards the resistance at 1.3785 – 1.3800.

USD/JPY

USD/JPY tests new lows as traders bet on dovish Fed. The successful test of the previous support at 158.00 – 158.50 provided USD/JPY with an opportunity to gain additional downside momentum.

In case USD/JPY settles below the 156.50 level, it will head towards the nearest support, which is located in the 154.50 – 155.00 range.

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