EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Mostly Flat At The Start Of The Week

Key Insights

• EUR/USD settled below the 1.0900 level as traders waited for catalysts. 
• USD/CAD gained some ground as demand for commodity-related currencies declined. 
• USD/JPY made an attempt to settle below the 148.00 level. 

U.S. Dollar

U.S. Dollar Index is mostly flat as traders react to CB Leading Economic Index report, which showed that Leading Economic Index declined by 0.1% month-over-month in December.

The nearest resistance level for U.S. Dollar Index is located in the 103.50 – 103.75 range. A move above this level will open the way to the test of the resistance at 104.35 – 104.55.

EUR/USD

EUR/USD pulls back as traders wait for additional catalysts. Treasury yields are moving lower, but this move does not put additional pressure on U.S. dollar.

If EUR/USD stays below the 1.0900 level, it will head towards the support at 1.0810 – 1.0830.

GBP/USD

GBP/USD gains some ground in a quiet trading session. There are no important economic reports scheduled to be released in the UK today, so traders will stay focused on general market sentiment.

If GBP/USD moves above the 1.2750 level, it will head towards the resistance at 1.2820 – 1.2850.

USD/CAD

USD/CAD gains some ground as demand for commodity-related currencies declines amid a pullback in precious metals markets.

In case USD/CAD settles above the 50 MA at 1.3443, it will head towards the resistance at 1.3480 – 1.3500.

USD/JPY

USD/JPY is slowly moving lower as Treasury yields pull back. The Japanese yen remains fundamentally weak due to the ultra-dovish policy of the BoJ, so it remains to be seen whether USD/JPY will be able to settle below the support at 147.00 – 147.50.

If USD/JPY moves below the 147.50 level, it will head towards the next support at 144.65 – 145.00.

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