EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Declines Despite Rising Treasury Yields

U.S. Dollar

U.S. Dollar Index is losing some ground despite rising Treasury yields. While the Fed may be more hawkish than previously expected due to the recent inflation data, traders are not ready to purchase the American currency.

U.S. Dollar Index did not manage to settle above the 103 level and pulled back towards 102.80. A move below this level will push U.S. Dollar Index towards the nearest support, which is located in the 102.10 – 102.30 range.

EUR/USD

EUR/USD gains ground despite the disappointing Euro Area Industrial Production report. The report indicated that Euro Area Industrial Production declined by 3.2% month-over-month in January, compared to analyst consensus of -1.5%.

In case EUR/USD settles above the 1.0950 level, it will head towards the nearest resistance, which is located in the 1.0980 – 1.1000 range.

GBP/USD

GBP/USD is mostly flat as traders react to the economic reports from the UK. GDP increased by 0.2% month-over-month in January, in line with analyst estimates. Industiral Production declined by 0.2%, while Manufacturing Production remained unchanged.

Currently, GBP/USD is trying to settle above the resistance at 1.2800 – 1.2825. In case this attempt is successful, GBP/USD will move towards the next resistance level at 1.2900 – 1.2930.

USD/CAD

USD/CAD is losing some ground as oil markets are moving higher after the release of the bullish EIA report. Other commodity-related currencies have also enjoyed some support in today’s trading session.

If USD/CAD stays below the 1.3480 level, it will head towards the next resistance at 1.3380 – 1.3410.

USD/JPY

USD/JPY gains some ground as traders focus on rising Treasury yields. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

If USD/JPY manages to settle above the 148.00 level, it will head towards the resistance at 149.50 – 150.00.

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