EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat Ahead Of Tomorrow’s CPI Reports

Key Insights

• EUR/USD climbed above the 1.0950 level as traders reacted to comments from ECB officials. 
• GBP/USD was swinging between gains and losses amid a lack of catalysts. 
• USD/JPY moved towards the 146.00 level, supported by rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index is mostly flat as traders are not ready for big moves ahead of tomorrow’s inflation reports.

The nearest support level for U.S. Dollar Index is located in the 101.75 – 102.00 range. If U.S. Dollar Index declines below 101.75, it will head towards the next support level at 100.50 – 100.80.

EUR/USD

EUR/USD gained some ground as traders reacted to comments from ECB officials, who appeared to signal that market’s expectations of rapid rate cuts were too aggressive.

In case EUR/USD settles above the 50 MA at 1.0968, it will head towards the next resistance, which is located in the 1.1015 – 1.1035 range.

GBP/USD

GBP/USD is mostly flat amid a lack of catalysts. GBP/USD traders are waiting for the release of U.S. inflation data, so trading may stay choppy during today’s trading session.

A move above the 1.2750 level will open the way to the test of the resistance at 1.2820 – 1.2850.

USD/CAD

USD/CAD is also flat as traders watch the price swings in the oil markets, which are driven by the bearish EIA report and rising tensions in the Middle East.

USD/CAD needs to settle above the 1.3410 level to gain additional upside momentum. In this case, USD/CAD will head towards the resistance at 1.3480 – 1.3500.

USD/JPY

USD/JPY tested new highs as traders focused on the recent rebound in Treasury yields.

If USD/JPY stays above the 145.00 level, it will head towards the next resistance at 147.00 – 147.50.

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