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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat As Traders Focus On Fed Officials’ Comments

By:
Vladimir Zernov
Updated: Jun 2, 2024, 09:51 GMT+00:00

Key Points:

  • EUR/USD settled near the 1.0850 level as traders reacted to Germany's PPI report.
  • USD/CAD gained ground as Canada's Core Inflation Rate dropped to 1.6%.
  • USD/JPY pulled back on profit-taking.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 210524 4h Chart

U.S. Dollar Index is flat as traders react to Fed officials’ comments. Fed Governor Christopher Waller noted that he needed to see several more months of good inflation data before he was ready to support a rate cut. Previously, Atlanta Fed President Raphael Bostic said that he was not in a hurry to cut rates. Treasury yields are moving lower today, but this move does not put pressure on the U.S. dollar.

U.S. Dollar Index continues its attempts to settle above the resistance at 104.40 – 104.60. In case U.S. Dollar Index manages to settle above the 104.60 level, it will get to the test of the 50 MA at 104.81.

EUR/USD

EUR/USD
EUR/USD 210524 4h Chart

EUR/USD is swinging between gains and losses as traders react to Germany’s PPI report. The report indicated that PPI declined by 3.3% year-over-year in April, compared to analyst consensus of -3.2%.

If EUR/USD settles below the 50 MA at 1.0829, it will head towards the nearest support level, which is located in the 1.0785 – 1.0800 range.

GBP/USD

GBP/USD
GBP/USD 210524 4h Chart

GBP/USD remains stuck near the 1.2700 level as traders wait for additional catalysts.

In case GBP/USD stays above 1.2700, it will head towards the next resistance level at 1.2780 – 1.2800.

USD/CAD

USD/CAD
USD/CAD 210524 4h Chart

USD/CAD gains ground as traders react to Canada’s inflation reports. Inflation Rate declined from 2.9% in March to 2.7% in April, while Core Inflation Rate decreased from 2.0% to 1.6%.

In case USD/CAD settles above the 50 MA at 1.3644, it will head towards the significant resistance level at 1.3785 – 1.3800.

USD/JPY

USD/JPY
USD/JPY 210524 4h Chart

USD/JPY pulls back from recent highs as traders take some profits off the table after the recent rebound.

It looks that bulls are afraid to push USD/JPY above the 157.00 level due to intervention risks. In case USD/JPY moves back below the 50 MA at 155.77, it will head towards the nearest support level at 154.50 – 155.00.

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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