EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back After PMI Reports

Key Insights

• EUR/USD gains ground despite disappointing GDP Growth Rate report from Germany. 
• GBP/USD managed to settle above the 1.2600 level as UK Consumer Confidence improved. 
• USD/CAD pulled back towards the 1.3600 level as Canada’s Retail Sales increased in September. 

U.S. Dollar

U.S. Dollar Index is losing ground as traders react to PMI reports, which showed that Manufacturing PMI pulled back into contraction territory.

In case U.S. Dollar Index settles below the support at 103.50 – 103.75, it will head towards the next support level, which is located in the 101.75 – 102.00 range.

EUR/USD

EUR/USD gains ground as traders react to the Ifo Business Climate report from Germany, which indicated that Business Climate improved from 86.9 in October to 87.3 in November. The disappointing GDP data from Germany, which showed that GDP Growth Rate was -0.4% in the third quarter, did not put any pressure on the euro.

A successful test of the resistance at 1.0925 – 1.0950 will open the way to the test of the next resistance level at 1.1070 – 1.1100.

GBP/USD

GBP/USD gains ground as GfK Consumer Confidence report showed that Consumer Confidence improved from -30 in October to -24 in November.

If GBP/USD stays above the 1.2600 level, it will get to the test of the nearest resistance at 1.2650 – 1.2685.

USD/CAD

USD/CAD declined as traders reacted to Canada’s Retail Sales report, which showed that Retail Sales increased by 0.6% month-over-month in September.

From the technical point of view, RSI has recently moved into the oversold territory, so the risks of a rebound are increasing.

USD/JPY

USD/JPY remains stuck near the 149.50 level as traders focus on the economic data from Japan. Inflation Rate increased from 3% in September to 3.3% in October, while Core Inflation Rate grew from 2.8% to 2.9%.

If USD/JPY setttles above the 50 MA at 149.60, it will get to the test of the psychologically important 150.00 level.

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