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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Mostly Flat Ahead Of The Weekend

By:
Vladimir Zernov
Published: Sep 8, 2023, 16:46 GMT+00:00

Trading is calm in the absence of major catalysts.

EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

Key Insights

  • U.S. Dollar Index remains stuck near the 105.00 level as traders take some profits off the table. 
  • GBP/USD tests the support in the 1.2470 – 1.2500 range. 
  • USD/CAD retreats as traders focus on the rebound in the oil markets.

U.S. Dollar

DXY
DXY 080923 4h Chart

U.S. Dollar Index is mostly flat as traders take some profits off the table near multi-month highs.

In case U.S. Dollar Index manages to settle above the 105 level, it will head towards the next resistance, which is located in the 105.65 – 105.90 range.

EUR/USD

EUR/USD
EUR/USD 080923 4h Chart

EUR/USD found support near the 1.0700 level and is trying to rebound. The final reading of Germany’s Inflation Rate report met analyst estimates and did not have a material impact on market dynamics.

GBP/USD

GBP/USD
GBP/USD 080923 4h Chart

GBP/USD continues its attempts to settle below the support at 1.2470 – 1.2500. There are no important economic reports scheduled to be released in the UK and U.S. today, so traders will remain focused on general market sentiment.

A successful test of the support at 1.2470 – 1.2500 will open the way to the test of the next support level, which is located in the 1.2300 – 1.2330 range.

USD/CAD

USD/CAD
USD/CAD 080923 4h Chart

USD/CAD pulled back as oil markets rebounded towards the recent highs. Other commodity-related currencies have also moved higher in today’s trading session. The better-than-expected Unemployment Rate report, which showed that Unemployment Rate remained unchanged in August, provided additional support to the Canadian currency.

In case USD/CAD settles back below the 50 MA at 1.3600, it will head towards the support at 1.3500 – 1.3520.

USD/JPY

USD/JPY
USD/JPY 080923 4h Chart

USD/JPY stays close to recent highs as Treasury yields are rising. At this point, there are no bullish catalysts for the yen. Today’s GDP Growth Rate report missed analyst estimates, serving as an additional bearish catalyst for the Japanese currency.

The key question is whether BoJ will intervene if USD/JPY tests the nearest resistance at 148.00 – 149.00. Without interventions, USD/JPY will have a great chance to move above the 150.00 level.

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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