U.S. Dollar Gains Ground As Composite PMI Beats Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests Resistance At 104.30 – 104.50

U.S. Dollar Index gains ground as traders react to the better-than-expected Composite PMI report. The report showed that Composite PMI increased from 51.6 in February to 53.5 in March, compared to analyst forecast of 51.5.

Currently, U.S. Dollar Index is trying to settle above the resistance at 104.30 – 104.50. In case this attempt is successful, it will head towards the next resistance level, which is located in the 105.50 – 105.70 range.

EUR/USD Retreats As Composite PMI Misses Expectations

EUR/USD pulls back as traders focus on the disappointing Euro Area Composite PMI report. The report showed that Euro Area Composite PMI improved from 50.2 in February to 50.4 in March, compared to analyst consensus of 50.8.

In case EUR/USD settles below the nearest support level at 1.0760 – 1.0775, it will move towards the next support at 1.0630 – 1.0650.

GBP/USD Is Mostly Flat At The Start Of The Week

GBP/USD is mostly flat as traders focus on the strength of the services sector in the UK. Services PMI improved from 51 in February to 53.2 in March, compared to analyst forecast of 50.9.

If GBP/USD stays below the support at 1.2935 – 1.2950, it will head towards the next support level at 1.2810 – 1.2830.

USD/CAD Pulls Back On Tariff Optimism

USD/CAD is losing ground amid reports indicating that some sectors will be excluded from tariffs that would be imposed on April 2.

A move below the recent lows near 1.4260 will push USD/CAD towards the support level at 1.4180 – 1.4200.

USD/JPY Tests New Highs Amid Rising Treasury Yields

USD/JPY tests new highs as Treasury yields rebound. The yield of 2-year Treasuries climbed above the 4.00% level, while the yield of 10-year Treasuries settled above 4.30%.

In case USD/JPY manages to settle above the 151.00 level, it will head towards the nearest resistance at 152.00 – 152.50.

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