EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Pulls Back After ISM Services PMI Report

Key Insights

• GBP/USD settled near the 1.2700 level after BoE Interest Rate Decision. 
• USD/CAD moved lower amid a strong rebound in the oil markets. 
• USD/JPY declined below the 142.50 level on profit-taking. 

U.S. Dollar

U.S. Dollar Index pulled back as traders reacted to the ISM Services PMI report, which indicated that ISM Services PMI declined from 53.9 in June to 52.7 in July.

Currently, U.S. Dollar Index is moving towards the support in the 102.00 – 102.15 range. In case U.S. Dollar Index settles below 102, it will head towards the next support, which is located in the 101.00 – 101.15 area.

EUR/USD

EUR/USD settled near the 1.0950 level as traders focused on the final reading of the Euro Area Services PMI report, which showed that Euro Area Services PMI decreased from 52 in June to 50.9 in July.

In case EUR/USD fails to settle back above the 1.0950 level, it will gain additional downside momentum and move towards the support at 1.0835 – 1.0850.

GBP/USD

GBP/USD is mostly flat in volatile trading. Today, BoE raised the interest rate from 5% to 5.25%. Eight out of nine MPC members voted for the hike.

The nearest resistance level for GBP/USD is located in the 1.2725 – 1.2750 range. In case GBP/USD climbs above 1.2750, it will head towards the next resistance at 1.2970 – 1.3000.

USD/CAD

USD/CAD pulls back as oil markets rebound after yesterday’s sell-off. WTI oil has already managed to get above the $81 level, which was bullish for the Canadian dollar and other commodity-related currencies.

Back in July, USD/CAD faced significant resistance in the 1.3360 – 1.3380 range. If commodity markets continue to move higher, USD/CAD will head towards the support in the 1.3240 – 1.3265 range.

USD/JPY

USD/JPY retreats as traders take profits after the strong rebound. Treasury yields are moving higher, but this move does not provide any support to USD/JPY.

In case USD/JPY settles below the support at 141.85 – 142.35, it will head towards the next support level, which is located in the 137.65 – 138.00 range.

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