U.S. Dollar Moves Higher: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs

U.S. Dollar Index tests new highs as traders focus on rising Treasury yields. The yield of 2-year Treasuries settled back above the 4.00% level, while the yield of 10-year Treasuries moved above 4.15%.

In case U.S. Dollar Index climbs above the 104.00 level, it will head towards the next resistance level, which is located in the 104.60 – 104.80 range.

EUR/USD Pulls Back As Germany’s PPI Drops

EUR/USD is losing ground as traders react to Producer Prices data from Germany. PPI declined by 1.4% year-over-year in September, compared to analyst forecast of -0.8%.

A move below the 1.0800 level will lead to the test of the nearest support, which is located in the 1.0765 – 1.0780 range.

GBP/USD Remains Under Strong Pressure

GBP/USD pulls back as traders focus on general strength of the U.S. dollar. There are no important economic reports scheduled to be released in the UK and U.S. today, so traders will stay focused on general market sentiment.

A successful test of the support level at 1.3000 – 1.3020 will open the way to the test of the next support at 1.2870 – 1.2880.

USD/CAD Gains Ground As Demand For Commodity-Related Currencies Declines

USD/CAD tests new highs as precious metals markets pull back. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

If USD/CAD moves above the 1.3850 level, it will head towards the next resistance level at 1.3930 – 1.3950.

USD/JPY Tests New Highs As Treasury Yields Rise

USD/JPY gains ground, supported by rising Treasury yields. Treasury yield dynamics serve as the key catalyst for USD/JPY due to the ultra-dovish policy of the BoJ.

If USD/JPY stays above the resistance at 149.50 – 150.00, it will move towards the next resistance level at 153.00 – 153.50.

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