U.S. Dollar Retreats As Trump Raises Tariffs On Canada’s Steel and Aluminum: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests Multi-Month Lows

U.S. Dollar Index tests new lows as Donald Trump decided to double tariffs on Canadian steel and aluminum. The U.S. President retaliated against Ontario’s move to raise tax on electricity exported to the U.S.

Currently, U.S. Dollar Index is trying to settle below the support level at 103.20 – 103.40. In case this attempt is successful, U.S. Dollar Index will head towards the next support, which is located in the 102.00 – 102.20 range.

EUR/USD Tests Resistance At 1.0920 – 1.0935

EUR/USD gains ground as traders react to U.S. JOLTs Job Openings report. The report indicated that JOLTs Job Openings increased from 7.508 million to 7.740 million, compared to analyst forecast of 7.63 million.

If EUR/USD manages to settle above the resistance at 1.0920 – 1.0935, it will head towards the next resistance at 1.1030 – 1.1050.

GBP/USD Attempts To Settle Above 1.2950

GBP/USD moved higher despite the disappointing BRC Retail Sales Monitor report. The report indicated that Retail Sales increased by 0.9% month-over-month in February, compared to analyst forecast of 2.4%.

A successful test of the resistance at 1.2935 – 1.2950 will push GBP/USD towards the next resistance level at 1.3050 – 1.3070.

USD/CAD Moves Higher As Traders Focus On New Tariffs

USD/CAD tests resistance at 1.4485 – 1.4500 as traders focus on new tariffs that will go into effect on March 12.

A move above the 1.4500 level will open the way to the test of the resistance level at 1.4680 – 1.4700.

USD/JPY Rebounds As Treasury Yields Rise

USD/JPY moved away from recent lows as traders focused on GDP Growth Rate report from Japan. The report showed that GDP Growth Rate was +0.6% in the fourth quarter, compared to analyst forecast of +0.7%.

If USD/JPY manages to settle back above the 148.00 level, it will head towards the nearest resistance level, which is located in the 149.00 – 149.50 range.

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