EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Composite PMI Beats Expectations

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the better-than-expected U.S. PMI report. Composite PMI declined from 52.5 in February to 52.2 in March, compared to analyst consensus of 51.5.

U.S. Dollar Index settled back above the 103.50 – 103.75 level and is trying to climb above 104.00. In case this attempt is successful, it will head towards the next resistance, which is located in the 104.40 – 104.60 range.

EUR/USD

EUR/USD pulled back as traders focused on the disappointing Manufacturing PMI report from the EU. Euro Area Manufacturing PMI declined from 46.5 in February to 45.7 in March, compared to analyst consensus of 47. Numbers below 50 show contraction.

A move below the 1.0850 level will lead to the test of the nearest support level at 1.0810 – 1.0830.

GBP/USD

GBP/USD tests support at 1.2650 – 1.2685 as traders react to the BoE Interest Rate Decision. The Interest Rate remained unchanged at 5.25%, in line with analyst expectations. Interestingly, nobody voted for a rate hike, which was a dovish signal.

A successful test of the support at 1.2650 – 1.2685 will open the way to the test of the next support level at 1.2530 – 1.2550.

USD/CAD

USD/CAD gains ground as traders focus on the pullback in commodity markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

If USD/CAD climbs back above the 1.3550 level, it will move towards the resistance, which is located in the 1.3600 – 1.3620 range.

USD/JPY

USD/JPY moved back towards the 151.50 level as traders have quickly bought the recent pullback. It remains to be seen whether BoJ is ready to defend the 152.00 level.

If USD/JPY manages to settle above 152.00, it may gain strong upside momentum. However, traders should be cautious as BoJ may intervene to protect the Japanese yen.

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