EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Higher As Treasury Yields Rebound

Key Insights

• EUR/USD is under pressure as Euro Area Inflation Rate missed analyst expectations.
• GBP/USD pulled back towards the 1.2650 level amid profit-taking. 
• USD/JPY rebounded towards 148.00 as traders focused on rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index gains ground as traders focus on rising Treasury yields and react to the economic data. PCE Price Index was unchanged in October, compared to analyst consensus of +0.1%. Personal Income and Personal Spending increased by 0.2% month-over-month in October, in line with analyst expectations.

The nearest resistance for the U.S. Dollar Index is located in the 103.50 – 103.75 range. A move above 103.75 will push U.S. Dollar Index towards the resistance at 104.50 – 104.75.

EUR/USD

EUR/USD pulled back as traders reacted to inflation data from the EU. Euro Area Inflation Rate declined from 2.9% in October to 2.4% in November, compared to analyst consensus of 2.7%.

A move below the 1.0900 level will open the way to the test of the next support level, which is located in the 1.0765 – 1.0790 range.

GBP/USD

GBP/USD is under pressure as traders continue to take profits after the strong rally.

In order to have a chance to gain upside momentum, GBP/USD must settle back above the resistance at 1.2650 – 1.2685.

USD/CAD

USD/CAD is swinging between gains and losses while oil markets suffer a sell-off as traders react to the OPEC+ meeting.

If USD/CAD manages to settle back above the 1.3600 level, it will move towards the next resistance at 1.3675 – 1.3700.

USD/JPY

USD/JPY gains ground as traders focus on rising Treasury yields. The better-than-expected Industrial Production report from Japan did not provide support to the Japanese currency.

In case USD/JPY climbs above the resistance at 148.00 – 149.00, it will head towards the next resistance level at 151.45 – 152.00.

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