U.S. Dollar Gains Ground As Traders Prepare For Tariffs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Moving Higher At The Start Of The Week

U.S. Dollar Index gains ground as traders react to the weaker-than-expected Dallas Fed Manufacturing Index report. The report showed that Dallas Fed Manufacturing Index decreased from -8.3 in February to -16.3 in March, compared to analyst forecast of -12.

In case U.S. Dollar Index settles above the resistance at 104.30 – 104.50, it will move towards the next resistance level at 105.50 – 105.70.

EUR/USD Pulls Back As Germany’s Inflation Rate Misses Estimates

EUR/USD is moving lower as traders react to inflation data from Germany. Inflation Rate increased by +0.3% month-over-month in March, compared to analyst consensus of +0.4%.

The nearest support level for EUR/USD is located in the 1.0760 – 1.0775 range. A successful test of this level will push EUR/USD towards the next support level at 1.0630 – 1.0650.

GBP/USD Attempts To Settle Below 1.2900

GBP/USD is moving lower as traders react to the weaker-than-expected Mortgage Approvals and Mortgage Lending reports from the UK.

If GBP/USD stays below the 1.2900 level, it will move towards the support at 1.2810 – 1.2830. RSI is in the moderate territory, and there is plenty of room to gain additional momentum in the near term.

USD/CAD Tests New Highs

USD/CAD gains ground as traders remain focused on tariffs and bet that Canadian economy will find itself under material pressure.

A move above the 1.4400 level will open the way to the test of the next resistance level at 1.4485 – 1.4500.

USD/JPY Rebounds From Session Lows

USD/JPY attempts to settle above the 150.00 level as traders focus on the weak Retail Sales report from Japan. The report indicated that Retail Sales increased by +1.4% year-over-year in February, compared to analyst consensus of +2%.

If USD/JPY settles above the 150.00 level, it will move towards the recent highs near the 151.00 level.

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