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

Vladimir Zernov
Published: May 7, 2024, 16:20 GMT+00:00

Key Points:

  • EUR/USD was mostly flat as traders reacted to the better-than-expected Euro Area Retail Sales report.
  • GBP/USD tested support at 1.2530 - 1.2450.
  • USD/JPY moved towards the 155.00 level.

In this article:

U.S. Dollar

DXY 070524 4h Chart

U.S. Dollar Index gains some ground as traders react to RCM/TIPP Economic Optimism Index report. The report indicated that RCM/TIPP Economic Optimism Index declined from 43.2 in April to 41.8 in May, compared to analyst consensus of 44.1. Treasury yields are moving lower, but this move does not put any pressure on the American currency.

In case U.S. Dollar Index settles above the recent highs at 105.30, it will move towards the nearest resistance level at 105.75 – 106.00.


EUR/USD 070524 4h Chart

EUR/USD is mostly flat after the release of the Euro Area Retail Sales report. The report showed that Retail Sales increased by 0.8% month-over-month in March, compared to analyst consensus of 0.6%.

In case EUR/USD climbs above the resistance at 1.0785 – 1.0800, it will move towards the next resistance level at 1.0870 – 1.0885.


GBP/USD 070524 4h Chart

GBP/USD pulls back as traders focus on the Halifax House Price Index report, which showed that house prices increased by 0.1% month-over-month in April. On a year-over-year basis, house prices grew by 1.1%.

Currently, GBP/USD is trying to settle below the support at 1.2530 – 1.2550. In case this attempt is successful, GBP/USD will move towards the next support level at 1.2425 – 1.2450.


USD/CAD 070524 4h Chart

USD/CAD gains ground as precious metals markets pull back. Other commodity-related currencies are swinging between gains and losses in today’s trading session.

If USD/CAD settles above 1.3700, it will move towards the next resistance level at 1.3785 – 1.3800.


USD/JPY 070524 4h Chart

USD/JPY continues to rebound despite worries about potential interventions from the BoJ, which has recently signaled that it was ready to provide support to the yen. Fundamentally, the yen remains weak, and it looks that bulls are ready to test BoJ’s ability to support the Japanese currency.

If USD/JPY climbs above the nearest resistance at 154.50 – 155.00, it will move towards the next resistance level at 158.00 – 158.50.

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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