EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back Ahead Of Fed Decision

U.S. Dollar

U.S. Dollar Index is losing ground ahead of the Fed decision, which will be released soon. Today, traders also focused on ADP Employment Change report, which indicated that private businesses added 122,000 jobs in July. Analysts expected ADP Employment Change of +150,000, so the report missed analyst estimates. Pending Home Sales increased by 4.8% month-over-month in June, compared to analyst consensus of +1.5%.

In case U.S. Dollar Index manages to settle below the 104.00 level, it will head towards the nearest support at 103.50 – 103.75.

EUR/USD

EUR/USD settled near the 1.0800 level as traders reacted to inflation data from the EU. Inflation Rate increased from 2.5% in June to 2.6% in July, compared to analyst consensus of 2.4%. Core Inflation Rate remained unchanged at 2.9%.

In case EUR/USD declines below the support at 1.0785 – 1.0800, it will move towards the next support level, which is located in the 1.0670 – 1.0690 range.

GBP/USD

GBP/USD is losing some ground as traders prepare for the Fed decision. Treasury yields are moving lower, but this move does not provide any support to GBP/USD.

From the technical point of view, GBP/USD continues to move towards the nearest support level at 1.2780 – 1.2800.

USD/CAD

USD/CAD pulls back as traders focus on the rally in commodity markets. Oil and gold gained strong upside momentum amid rising geopolitical tensions.

A move below 1.3800 will open the way to the test of the next support level, which is located in the 1.3600 – 1.3620 range.

USD/JPY

USD/JPY tests new lows after the surprising BoJ Interest Rate Decision. The BoJ raised the interest rate from 0.1% to 0.25%, while analysts expected that it would keep it unchanged at 0.1%.

Traders should note that RSI is in the oversold territory, so the risks of a rebound are increasing.

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