EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat Despite Falling Treasury Yields

Key Insights

• EUR/USD is mostly flat amid a lack of catalysts. 
• GBP/USD pulled back towards the 1.2600 level after an unsuccessful attempt to settle above 1.2650.
• USD/JPY declined towards 149.00 as traders focused on the pullback in Treasury yields. 

U.S. Dollar

U.S. Dollar Index is mostly flat as traders react to the economic reports. New Home Sales declined by 5.6% month-over-month in October, while Dallas Fed Manufacturing Index decreased from -19.2 in October to -19.9 in November.

In case U.S. Dollar Index settles back above the resistance at 103.50 – 103.75, it will head towards the next resistance level, which is located in the 104.50 – 104.75 range.

EUR/USD

EUR/USD is also flat as traders wait for catalysts. There are no important economic reports scheduled to be released in the EU today, so traders will stay focused on general market sentiment.

A move above the 1.0950 level will push EUR/USD towards the next resistance, which is located in the 1.1070 – 1.1100 range.

GBP/USD

GBP/USD did not manage to settle above the resistance at 1.2650 and pulled back towards the 1.2600 level.

RSI has recently moved back into the moderate territory, so there is enough room to gain additional upside momentum in case the right catalysts emerge.

USD/CAD

USD/CAD is swinging between gains and losses as traders stay focused on the choppy dynamics of the oil markets. Other commodity-related currencies have gained some ground in today’s trading session.

The nearest resistance for USD/CAD is located in the 1.3675 – 1.3700 range. A move above 1.3700 will push USD/CAD towards the resistance at 1.3800 – 1.3830.

USD/JPY

USD/JPY is trying to settle back below the support at 148.00 – 149.00 as traders focus on the pullback in Treasury yields.

In case this attempt is successful, USD/JPY will head towards the resistance at 144.65 – 145.00.

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