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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Personal Income Grows By 1%

By:
Vladimir Zernov
Published: Feb 29, 2024, 16:22 UTC

Key Points:

  • EUR/USD pulled back as Germany's Inflation Rate declined to 2.5%.
  • USD/CAD moved lower as traders focused on strong commodity markets.
  • USD/JPY is trying to settle below the key support at 149.50 - 150.00 as Treasury yields are moving lower.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 290224 4h Chart

U.S. Dollar Index settled near the 104.00 level after nna unsuccessful attempt to settle blow 103.75. Personal Income increased by 1% month-over-month in January, compared to analyst consensus of +0.4%. Personal Spending grew by 0.2%, in line with analyst estimates. Initial Jobless Claims report showed that 215,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 210,000. Treasury yields moved lower, but this move did not put pressure on the American currency.

In case U.S. Dollar Index climbs above 104.00, it will head towards the nearest resistance, which is located in the 104.35 – 104.55 range.

EUR/USD

EUR/USD
EUR/USD 290224 4h Chart

EUR/USD pulled back as traders reacted to Germany’s inflation data. Inflation Rate declined from 2.9% in January to 2.5% in February, compared to analyst consensus of 2.6%.

A move below the support at 1.0810 – 1.0830 will open the way to the test of the next support at 1.0730 – 1.0750.

GBP/USD

GBP/USD
GBP/USD 290224 4h Chart

GBP/USD is losing ground after an unsuccessful attempt to settle above the 1.2685 level.

The resistance at 1.2650 – 1.2685 has been tested many times and proved its strength. If GBP/USD pulls back below the 1.2600 level, it will gain additional downside momentum and head towards the next support level, which is located in the 1.2500 – 1.2520 range.

USD/CAD

USD/CAD
USD/CAD 290224 4h Chart

USD/CAD moved lower as traders focused on rising commodity markets. Other commodity-related currencies were mixed in today’s trading session.

If USD/CAD settles below 1.3550, it will head towards the nearest support level at 1.3480 – 1.3500.

USD/JPY

USD/JPY
USD/JPY 290224 4h Chart

USD/JPY is trying to settle below the psychologically important 150.00 level as traders focus on the pullback in Treasury yields.

A move below 149.50 will open the way to the test of the next support level at 147.00 – 147.50.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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