EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Retail Sales Exceed Expectations

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the strong Retail Sales report. The report indicated that Retail Sales increased by 1% month-over-month in July, compared to analyst consensus of +0.3%. Initial Jobless Claims declined from 234,000 (revised from 233,000) to 227,000, compared to analyst consensus of 235,000. Treasury yields moved higher, providing additional support to the American currency.

If U.S. Dollar Index settles above the 103.00 level, it will move towards the nearest resistance at 103.50 – 103.75.

EUR/USD

EUR/USD pulled back as traders focused on U.S. economic data and rising Treasury yields.

If EUR/USD declines below the 50 MA at 1.0946, it will move towards the nearest support level at 1.0900 – 1.0915.

GBP/USD

GBP/USD moved higher as traders reacted to UK GDP Growth Rate report, which showed that GDP Growth Rate was 0.6% in the second quarter.

A move above 1.2870 will open the way to the test of the nearest resistance at 1.2930 – 1.2950.

USD/CAD

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

In case USD/CAD settles below the 1.3700 level, it will move towards the support at 1.3600 – 1.3620.

USD/JPY

USD/JPY tests new highs as traders focus on rising Treasury yields. The yield of 2-year Treasuries rallied towards the 4.10% level as bond traders reacted to the better-than-expected U.S. Retail Sales report.

Currently, USD/JPY is trying to settle above the resistance at 149.30 – 149.70. RSI remains in the moderate territory, so there is enough room to gain additional upside momentum in case the right catalysts emerge. If USD/JPY settles above 149.70, it will head towards the next resistance at 154.50 – 155.00.

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