EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Dives As Traders React To Inflation Data

Key Insights

• EUR/USD rallied above 1.0800 after the release of U.S. inflation data. 
• GBP/USD tested multi-week highs as Treasury yields dived. 
• USD/JPY pulled back below the 151.00 level. 

U.S. Dollar

U.S. Dollar Index found itself under strong pressure after the release of inflation reports, which showed that Inflation Rate declined from 3.7% in September to 3.2% in October.

In case U.S. Dollar Index settles below the support at 104.50 – 104.75, it will head towards the next support level, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD rallied as traders reacted to U.S. inflation data. Traders have already started to prepare for Fed rate hikes in 2024.

In case EUR/USD manages to stay above the 1.0800 level, it will head towards the next resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD has also gained strong momentum after the release of U.S. inflation data.

Traders should note that RSI is close to the extremely overbought territory, so the risks of a pullback are increasing.

USD/CAD

USD/CAD is losing ground as commodity markets are moving higher. The general weakness of the U.S. dollar served as an additional bearish catalyst for USD/CAD.

The nearest support level for USD/CAD is located in the 1.3675 – 1.3700 range. A move below 1.3675 will push USD/CAD towards the next support at 1.3570 – 1.3600.

USD/JPY

USD/JPY pulled back from recent highs as traders focused on U.S. inflation reports and potential interventions from the BoJ.

A move below the 150.00 level will open the way to the test of the nearest support at 148.00 – 149.00.

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