U.S. Dollar Gains Ground On Tariff Threat: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar  Rebounds From Multi-Week Lows

U.S. Dollar Index is moving higher as traders react to the disappointing Durable Goods Orders report. The report showed that Durable Goods Orders declined by 2.2% month-over-month in December, compared to analyst forecast of +0.6%.

In case U.S. Dollar Index climbs back above the 108.00 level, it will move towards the nearest resistance level, which is located in the 108.30 – 108.50 range.

EUR/USD Is Under Pressure As Traders Focus On Trump’s Tariff Plans

EUR/USD is losing ground as Trump said that he wanted to impose a universal tariff that is “much bigger” than 2.5%. Tariffs are bullish for the U.S. dollar.

Currently, EUR/USD is trying to settle below the support at 1.0420 – 1.0435. In case this attempt is successful, EUR/USD will move towards the next support level, which is located in the 1.0335 – 1.0350 range.

GBP/USD Is Heading Towards The 1.2400 Level

GBP/USD moved lower as traders focused on the outlook for Trump’s tariff policy. Traders will likely stay focused on this important catalyst in the upcoming trading sessions.

In case GBP/USD settles below the recent lows near 1.2415, it will move towards the next support level, which is located in the 1.2355 – 1.2370 range.

USD/CAD Tests The 1.4400 Level Amid Falling Demand For Commodity-Related Currencies

USD/CAD continues its attempts to settle above the 1.4400 level despite the rebound in gold markets. Other commodity-related currencies have also found themselves under pressure due to tariff threats.

A move above the 1.4400 level will provide USD/CAD with an opportunity to gain additional upside momentum and move towards the nearest resistance at 1.4540 – 1.4560.

USD/JPY Moved Above 155.50 Amid Rising Treasury Yields

USD/JPY gains ground as traders react to rising Treasury yields. The yield of 2-year Treasuries climbed above the 4.22% level, while the yield of 10-year Treasuries settled above 4.57%.

In case USD/JPY settles above the resistance at 156.00 – 156.50, it will head towards the next resistance level at 158.00 – 158.50.

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