EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground In Quiet Trading

Key Insights

• EUR/USD is flat after Germany’s Full Year GDP Growth report. 
• USD/CAD is trying to settle above 1.3450 as oil markets pull back. 
• USD/JPY settled above 145.50 as traders focused on the fundamental weakness of the Japanese currency. 

U.S. Dollar

U.S. Dollar Index gains some ground amid a lack of catalysts. Trading is calm due to Martin Luther King, Jr. Day.

From the technical point of view, U.S. Dollar Index remains stuck near the 102.50 level.

EUR/USD

EUR/USD is flat as traders react to Germany’s Full Year GDP Growth report, which indicated that GDP growth was -0.3% in 2023, in line with the analyst consensus.

The nearest support level for EUR/USD is located in the 1.0925 – 1.0950 range. A move below the 1.0925 level will open the way to the test of the support at 1.0810 – 1.0830.

GBP/USD

GBP/USD is losing some ground as traders wait for additional catalysts. On Wednesday, traders will have a chance to take a look at inflation data from the UK, which will likely serve as the key catalyst for GBP/USD.

If GBP/USD declines below the 50 MA at 1.2717, it will head towards the nearest support level at 1.2650 – 1.2685.

USD/CAD

USD/CAD gains ground as oil markets pull back despite rising tensions in the Middle East.

A move above the 1.3450 level will push USD/CAD towards the next resistance, which is located in the 1.3480 – 1.3500 range.

USD/JPY

USD/JPY is moving higher as traders focus on general dynamics of the American currency. The Japanese yen remains fundamentally weak due to the ultra-dovish policy of the BoJ.

If USD/JPY climbs above the 146.00 level, it will head towards the resistance at 147.00 – 147.50.

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