EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Higher As GDP Growth Rate Exceeds Expectations

Key Insights

• EUR/USD declined below the 1.0850 level as traders reacted to ECB Interest Rate Decision. 
• USD/CAD pulled back as oil markets tested new highs. 
• USD/JPY climbed back towards the 148.00 level. 

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the better-than-expected GDP Growth Rate report, which showed that GDP Growth Rate was 3.3% in the fourth quarter.

If U.S. Dollar Index climbs above the resistance at 103.50 – 103.75, it will move towards the next resistance level, which is located in the 104.35 – 104.55 range.

EUR/USD

EUR/USD found itself under pressure after ECB left the interest rate unchanged. During the press conference, Lagarde noted that it was too early to talk about rate cuts. Interestingly, these words did not provide support to EUR/USD.

In case EUR/USD settles below the support at 1.0810 – 1.0830, it will head towards the next support level, which is located in the 1.0730 – 1.0750 range.

GBP/USD

GBP/USD pulls back as traders focus on general strength of the American currency.

A move below the support at 1.2650 – 1.2685 will open the way to the test of the next support level at 1.2500 – 1.2520.

USD/CAD

USD/CAD pulls back as oil markets test new highs. Other commodity-related currencies are mostly flat in today’s trading session.

In case USD/CAD moves back below the 1.3480 level, it will head towards the nearest support at 1.3380 – 1.3410.

USD/JPY

USD/JPY moved back towards the 148.00 level as U.S. dollar gained ground against a broad basket of currencies.

In case USD/JPY climbs above the 148.00 level, it will head towards the resistance at 149.50 – 150.00

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