Advertisement
Advertisement
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Higher As Traders Wait For Powell
By:
Traders should be prepared for fast moves after the release of the Fed decision.
Key Insights
- EUR/USD pulled back below the 1.0550 level ahead of the Fed decision.
- USD/CAD was stuck near the recent highs below 1.3900.
- USD/JPY pulled back on profit-taking.
U.S. Dollar
U.S. Dollar Index gains ground as traders prepare for the Fed Interest Rate Decision. ADP Employment Change report showed that private businesses added 113,000 jobs in October, while JOLTs Job Openings increased from 9.5 million to 9.55 million.
The near-term dynamics of U.S. Dollar Index will depend on Powell’s comments. A move above the 107.20 level will provide a chance to gain strong upside momentum.
EUR/USD
EUR/USD tests support at 1.0520 – 1.0550 as traders wait for the Fed decision. Market participants will stay focused on the upcoming decision and the subsequent press conference.
EUR/USD has previously made several attempts to settle below 1.0520 but failed to develop sufficient momentum. However, the situation may change quickly if Powell’s comments are hawkish.
GBP/USD
GBP/USD remains stuck in a tight range as traders wait for catalysts. The final reading of the UK Manufacturing PMI report missed expectations, but traders remained focused on Fed policy oultook.
From the technical point of view, GBP/USD needs to settle above the 1.2200 level to gain sustainable upside momentum.
USD/CAD
USD/CAD is mostly flat as traders react to the final reading reading of Canada’s Manufacturing PMI report, which showed that Manufacturing PMI increased from 47.5 in September to 48.6 in October.
If USD/CAD climbs above the 1.3900 level, it will head towards the resistance at 1.3950 – 1.3975.
USD/JPY
USD/JPY pulls back as traders take some profits off the table after the recent rally.
Traders wait for the moves from BoJ, which may provide additional support to the yen. Meanwhile, the ultra-dovish policy of BoJ remains the key bearish catalyst for the Japanese currency.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
Advertisement