EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As Composite PMI Misses Expectations

Vladimir Zernov
Published: Apr 23, 2024, 16:30 GMT+00:00

Key Points:

  • EUR/USD rebounded towards 1.0700 as Services PMI exceeded analyst expectations.
  • GBP/USD is trying to climb back above the 1.2450 level.
  • USD/JPY is stuck below 155.00 as bulls fear that BoJ may intervene to support the yen.

In this article:

U.S. Dollar

DXY 230424 4h Chart

U.S. Dollar Index pulls back as traders react to the weaker-than-expected PMI reports. Manufacturing PMI declined from 51.9 in March to 49.9 in April, compared to analyst consensus of 52. Numbers below 50 show contraction. Services PMI decreased from 51.7 to 50.9, compared to analyst consensus of 52. Today, traders also had a chance to take a look at the New Home Sales report for March. The report showed that New Home Sales increased by 8.8% on a month-over-month basis.

Currently, U.S. Dollar Index is trying to settle below the support at 105.75 – 106.00. In case this attempt is successful, U.S. Dollar Index will move towards the next support level at 104.40 – 104.60.


EUR/USD 230424 4h Chart

EUR/USD rebounds as traders focus on the better-than-expected Euro Area Composite PMI report, which showed that Composite PMI improved from 50.3 in March to 51.4 in April, compared to analyst consensus of 50.8. It should be noted that Europe’s manufacturing sector remains under strong pressure, and the improvement in Composite PMI was driven by the growth of Services PMI.

In case EUR/USD settles above the resistance at 1.0700 – 1.0720, it will move towards the next resistance level, which is located in the 1.0785 – 1.0800 range.


GBP/USD 230424 4h Chart

GBP/USD has also managed to move away from recent lows as traders focused on general weakness of the U.S. dollar. The strong growth of UK Composite PMI provided additional support to the British pound.

A move above the resistance at 1.2425 – 1.2450 will push GBP/USD towards the next resistance level at 1.2530 – 1.2550.


USD/CAD 230424 4h Chart

USD/CAD continues to move lower as demand for commodity-related currencies is rising.

If USD/CAD settles below the 1.3650 level, it will move towards the nearest support at 1.3600 – 1.3620.


USD/JPY 230424 4h Chart

USD/JPY remains stuck in a tight range as bulls are not ready to test the 155.00 level due to fears of BoJ interventions.

The technical picture remains unchanged, and the key question is whether BoJ is ready to defend the key 155.00 level.

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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