EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As GDP Growth Rate Misses Expectations

Key Insights

• EUR/USD climbed towards the 1.1000 level after the release of U.S. GDP data. 
• USD/CAD tested the 1.3300 level as demand for commodity-related currencies increased. 
• USD/JPY pulled back towards 142.00 as traders focused on the general weakness of the U.S. dollar. 

U.S. Dollar

U.S. Dollar Index tests support at 101.75 – 102.00 as traders react to GDP Growth Rate report, which showed that GDP Growth Rate was 4.9% in the third quarter, compared to analyst consensus of 5.2%.

If U.S. Dollar Index settles below 101.75, it will head towards the next support level, which is located in the 100.50 – 100.80 range.

EUR/USD

EUR/USD gains ground as traders focus on U.S. GDP data. In the EU, the economic calendar will stay calm until the beginning of the next year.

From the technical point of view, EUR/USD needs to settle above the resistance at 1.1015 – 1.1035 to gain additional upside momentum.

GBP/USD

GBP/USD gained ground as traders focused on the general weakness of the U.S. dollar.

The support at 1.2650 – 1.2685 has been tested many times and proved its strength. A move above the 1.2700 level will open the way to the test of the resistance at 1.2820 – 1.2850.

USD/CAD

USD/CAD tests new lows amid rising demand for commodity-related currencies.

RSI remains in the moderate territory, so USD/CAD has a decent chance to settle below the support at 1.3270 – 1.3300.

USD/JPY

USD/JPY pulls back despite rising Treasury yields. The weaker-than-expected U.S. GDP Growth Rate report put material pressure on USD/JPY.

The nearest support level for USD/JPY is located in the 141.00 – 141.50 range. A move below 141.00 will provide USD/JPY with an opportunity to gain additional downside momentum.

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