EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Losing Ground Despite Rising Treasury Yields

U.S. Dollar

U.S. Dollar Index is losing some ground as traders react to the NY Empire State Manufacturing Index report, which indicated that NY Empire State Manufacturing Index improved from -15.60 in May to -6.0 in June.

U.S. Dollar Index settled below the resistance at 105.75 – 106.00. In case U.S. Dollar Index manages to settle above the 106.00 level, it will head towards the next resistance, which is located in the 106.60 – 106.80 range.

EUR/USD

EUR/USD tests resistance at 1.0710 – 1.0725 as the rebound continues. Today, traders had a chance to take a look at the final reading of Italy’s Inflation Rate report for May. The report showed that Inflation Rate remained unchanged at 0.8%.

In case EUR/USD climbs back above the 1.0725 level, it will move towards the resistance at 1.0785 – 1.0800.

GBP/USD

GBP/USD is moving higher as traders bet on a rebound after the recent pullback.

A move above the 1.2700 level will open the way to the test of the 50 MA at 1.2748. If GBP/USD climbs above the 50 MA, it will head towards the resistance at 1.2780 – 1.2800.

USD/CAD

USD/CAD gains ground despite rising oil markets. The pullback in precious metals markets put some pressure on commodity-related currencies, including Canadian dollar.

The technical picture remains unchanged as USD/CAD needs to settle above the resistance at 1.3785 – 1.3800 to have a chance to gain sustainable upside momentum.

USD/JPY

USD/JPY is moving towards the important 158.00 level as traders focus on rising Treasury yields. The yield of 2-year Treasuries is trying to settle above 4.75%, while the yield of 10-year Treasuries climbed above the 4.25% level.

In case USD/JPY moves above the resistance at 158.00 – 158.50, it will head towards the 160.00 level. Traders should note that BoJ may intervene to defend the 160.00 level.

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