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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – Yen Tests New Highs
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U.S dollar gained ground against a broad basket of currencies as traders prepared for tomorrow's Fed decision.
Key Insights
- EUR/USD pulled back towards the 1.0550 level as traders reacted to the weak economic data from the EU.
- USD/CAD moved towards 1.3900 as oil markets remained under pressure.
- USD/JPY tested new highs as BoJ left the interest rate unchanged at -0.1%.
U.S. Dollar
U.S. Dollar Index gains ground as traders continue to prepare for the Fed decision, which will be released tomorrow. The better-than-expected CB Consumer Confidence report provided additional support to the American currency.
U.S. Dollar Index is moving towards the strong resistance at 106.90 – 107.20. It remains to be seen whether U.S. Dollar Index will be able to develop sufficient momentum to move above this level ahead of the Fed decision.
EUR/USD
EUR/USD is losing ground as traders react to the European data. Euro Area GDP Growth Rate was -0.1% in the third quarter, while Euro Area Inflation Rate declined from 4.3% in September to 2.9% in October.
From the technical point of view, EUR/USD failed to settle above the resistance at 1.0670 – 1.0700 and moved back towards the support at 1.0520 – 1.0550.
GBP/USD
GBP/USD is losing ground as traders focus on the general strength of the U.S. dollar.
GBP/USD faced strong resistance in the 1.2180 – 1.2200 area. Most likely, it will need significant catalysts to settle above the 1.2200 level.
USD/CAD
USD/CAD tested new highs after a successful test of the resistance at 1.3800 – 1.3830. The recent pullback in the oil markets put additional pressure on USD/CAD.
If USD/CAD settles above the 1.3900 level, it will head towards the nearest significant resistance at 1.3950 – 1.3975.
USD/JPY
USD/JPY tested new highs after BoJ left the interest rate unchanged at -0.1%. The ultra-dovish policy of the BoJ is the main bearish catalyst for the yen.
At this point, the key question is whether BoJ is ready to defend the yen. In case BoJ does not intervene, USD/JPY may settle above the 152.00 level and gain additional momentum.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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