EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Some Ground As PPI Exceeds Expectations

Key Insights

• GBP/USD settled below 1.2600 despite the better-than-expected UK Retail Sales report. 
• USD/CAD remains stuck near the support at 1.3480 – 1.3500 while commodity markets are moving higher.
• USD/JPY is trying to climb above 150.50 as Treasury yields rise. 

U.S. Dollar

U.S. Dollar Index is swinging between gains and losses as traders react to PPI report, which showed that Producer Prices increased by 0.3% month-over-month in January. Michigan Consumer Sentiment improved from 79 in January to 79.6 in February, compared to analyst consensus of 80.

In case U.S. Dollar Index settles below the support at 104.35 – 104.55, it will head towards the next support level, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD is moving higher as traders react to Germany’s Wholesale Prices report, which showed that Wholesale Prices increased by 0.1% month-over-month in January.

RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. In case EUR/USD settles above 1.0775, it will head towards the nearest resistance at 1.0810 – 1.0830.

GBP/USD

GBP/USD is losing some ground despite the better-than-expected Retail Sales report, which showed that Retail Sales increased by 3.4% month-over-month in January.

A move above 1.2600 will push GBP/USD towards the nearest resistance at 1.2650 – 1.2685.

USD/CAD

USD/CAD remains stuck near the support at 1.3480 – 1.3500 as traders wait for additional catalysts.

If USD/CAD settles below 1.3480, it will move towards the support at 1.3410 – 1.3380. On the upside, a move above 1.3500 will open the way to the test of the resistance at 1.3600 – 1.3620.

USD/JPY

USD/JPY gains ground as traders focus on rising Treasury yields. The yield of 2-year Treasuries moved towards 4.70%, while the yield of 10-year Treasuries settled near 4.30%.

From the technical point of view, USD/JPY settled above the 150.00 level and has a good chance to test the nearest resistance at 151.50 – 152.00.

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