EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests Weekly Highs Despite Rising Treasury Yields

Key Insights

• EUR/USD pulled back below 1.0850 as traders focused on the dovish comments from ECB officials. 
• USD/CAD tested new lows as traders reacted to the rebound in the oil markets. 
• USD/JPY pulled back as Treasury yields declined after the release of ISM Manufacturing PMI report. 

U.S. Dollar

U.S. Dollar Index gains some ground as traders react to the ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI remained unchanged at 46.7 in November, compared to analyst consensus of 47.6.

Currently, U.S. Dollar Index is trying to settle above the resistance at 103.50 – 103.75. In case this attempt is successful, it will move towards the next resistance in the 104.50 – 104.75 range.

EUR/USD

EUR/USD pulls back as traders react to the dovish comments of ECB officials, who noted that inflation was declining fast and that ECB would not raise rates unless there is a new shock.

If EUR/USD stays below the 1.0850 level, it will move towards the next support at 1.0765 – 1.0790.

GBP/USD

GBP/USD is mostly flat as traders react to the final reading of the UK Manufacturing PMI report, which indicated that Manufacturing PMI improved from 44.8 in October to 47.2 in November.

A move below the 50 MA at 1.2604 will open the way to the test of the next significant support level at 1.2370 – 1.2410.

USD/CAD

USD/CAD tested new lows as oil markets have started to rebound after yesterday’s pullback.

In case USD/CAD settles below the 1.3500 level, it will head towards the nxt support level at 1.3380 – 1.3410.

USD/JPY

USD/JPY is losing ground as traders focus on the pullback in Treasury yields, which was triggered by the weaker-than-expected ISM Manufacturing PMI report.

If USD/JPY moves below the 147.00 level, it will head towards the nearest significant support at 144.65 – 145.00.

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