EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Lower As Consumer Confidence Falls
Key Insights
- Weaker Michigan Consumer Sentiment report triggers U.S. Dollar Index pullback.
- A move above 1.0700 could send EUR/USD towards recent highs at 1.0765.
- GBP/USD struggles below 1.2400 amid concerns over the UK economy.
U.S. Dollar
U.S. Dollar Index pulls back as traders react to the weaker-than-expected Michigan Consumer Sentiment report, which showed that Consumer Sentiment declined from 69.5 in August to 67.7 in September.
In case U.S. Dollar Index manages to settle below the 105.00 level, it will head towards the support at 104.45 – 104.70.
EUR/USD
EUR/USD is trying to rebound from multi-week lows. Traders remain focused on the recent comments from ECB, which signaled that interest rates may have peaked but did not rule out another rate hike.
Taking a look at the daily chart, a move above the 1.0700 level will push EUR/USD towards the recent highs at 1.0765.
GBP/USD
GBP/USD continues its attempts to settle below the 1.2400 level as traders stay focused on the problems of the UK economy.
If GBP/USD settles below the 1.2400 level, it will head towards the nearest support at 1.2300 – 1.2330.
USD/CAD
USD/CAD moved back towards the recent lows as oil markets rebounded from session lows. Oil traders are focused on tight supplies, which is bullish for oil and commodity-related currencies.
In case USD/CAD declines below the support at 1.3500, it will head towards the next support level, which is located in the 1.3370 – 1.3400 range.
USD/JPY
USD/JPY is slowly moving towards the key resistance in the 148.00 – 149.00 range. Traders are cautious as BoJ may intervene to provide additional support to the yen. At the same time, there are no bullish catalysts for the Japanese currency, so USD/JPY bulls are pushing the pair towards new highs.
As I noted before, the key question is whether BoJ will decide to intervene in case USD/JPY moves above the 148 level. If BoJ does nothing, USD/JPY may quickly climb above the 150 level.
For a look at all of today’s economic events, check out our economic calendar.
