EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As BoJ Signals It Will Not Raise Rates In The Near Term

U.S. Dollar

U.S. Dollar Index gains ground as Treasury yields continued to rebound after the recent pullback, which was caused by weak job market data. The yield of 2-year Treasuries settled above the 4.00% level, while the yield of 10-year Treasuries moved towards 3.95%.

Currently, U.S. Dollar Index is moving towards the nearest resistance at 103.50 – 103.75. In case U.S. Dollar Index manages to settle above the 103.75 level, it will head towards the next resistance at 104.40 – 104.60.

EUR/USD

EUR/USD is mostly flat as traders react to Germany’s Industrial Production report. The report showed that Industrial Production increased by 1.4% month-over-month in June, compared to analyst consensus of +1%.

If EUR/USD settles above the 1.0950 level, it will head towards the nearest resistance at 1.0980 – 1.1000.

GBP/USD

GBP/USD is trying to rebound from multi-week lows. Today, traders focused on Halifax House Price Index report, which indicated that house prices increased by 0.8% month-over-month in July.

In case GBP/USD manages to stay above the 1.2700 level, it will have a chance to gain upside momentum and move towards the resistance at 1.2780 – 1.2800.

USD/CAD

USD/CAD pulls back as traders focus on the strong rebound in commodity markets. Other commodity-related currencies are also moving higher in today’s trading session.

A move below the 1.3700 level will open the way to the test of the significant support level at 1.3600 – 1.3620.

USD/JPY

USD/JPY rallied as BoJ deputy governor said that the central bank would not raise rates when markets were unstable. The strong yen triggered a huge sell-off in Japan’s equity markets, so the central bank is trying to calm investors.

From the technical point of view, USD/JPY has recently managed to settle above the previous resistance at 146.00 – 146.50 and is moving towards the next resistance level, which is located in the 149.30 – 149.70 range.

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