EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As PCE Index Meets Estimates

U.S. Dollar

U.S. Dollar Index is losing some ground as traders react to PCE Price Index report, which showed that PCE Prce Index increased by 0.1% month-over-month in June. Core PCE Price Index grew by 0.2%, exceeding analyst forecast of +0.1%. Personal Income increased by 0.2% on a month-over-month basis, while Personal Spending grew by 0.3%. Today, traders also had a chance to take a look at the final reading of Michigan Consumer Sentiment report. The report showed that Consumer Sentiment declined from 68.2 in June to 66.4 in July, compared to analyst consensus of 66.

If U.S. Dollar Index settles below the 50 MA at 104.24, it will head towards the nearest significant support level, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD gains ground as traders focus on the pullback in Treasury yields. The yield of 2-year Treasuries settled below the 4.40% level, while the yield of 10-year Treasuries declined towards 4.20%.

A move above the 50 MA at 1.0881 will open the way to the test of the resistance at 1.0900 – 1.0915.

GBP/USD

GBP/USD remains stuck below the resistance at 1.2880 – 1.2900 as traders react to U.S. economic data.

If GBP/USD climbs above the 1.2900 level, it will get to the test of the 50 MA at 1.2928.

USD/CAD

USD/CAD tested new highs as traders focused on the pullback in the oil markets. The rebound in gold markets did not provide support to the Canadian currency.

If USD/CAD climbs above the 1.3850 level, it will move towards the resistance at 1.3880 – 1.3900.

USD/JPY

USD/JPY is mostly flat as traders prepare for the BoJ Interest Rate Decision, which will be released next week.

The nearest resistance level for USD/JPY is located in the 154.50 – 155.00 range. If USD/JPY climbs above 155.00, it will move towards the 50 MA at 155.93.

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