EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As Treasury Yields Fall

U.S. Dollar

U.S. Dollar Index is losing ground as traders react to the GDP Price Index report, which indicated that GDP Price Index was 3.1% in the first quarter. Initial Jobless Claims report showed that 219,000 Americans filed for unemployment benefits in a week. Pending Home Sales declined by 7.7% month-over-month in April, while analysts expected that they would decrease by 0.6%. Treasury yields pulled back as bond traders reacted to the economic data, which was bearish for the American currency.

If U.S. Dollar Index settles below the support at 104.40 – 104.60, it will move towards the next support level at 103.75 – 103.90.

EUR/USD

EUR/USD gains ground as traders react to the Euro Area Unemployment Rate report. The report indicated that Unemployment Rate declined from 6.5% in March to 6.4% in April.

If EUR/USD settles above the 50 MA at 1.0843, it will move towards the resistance at 1.0870 – 1.0885.

GBP/USD

GBP/USD is moving higher as traders focus on falling Treasury yields and general weakness of the U.S. dollar.

A move above the 1.2750 level will open the way to the test of the nearest resistance at 1.2780 – 1.2800.

USD/CAD

USD/CAD retreats as demand for commodity-related currencies is rising despite the pullback in commodity markets.

If USD/CAD settles back below the 50 MA at 1.3667, it will head towards the nearest support level at 1.3600 – 1.3620.

USD/JPY

USD/JPY is losing ground as Treasury yields are moving lower. Fear of BoJ interventions may have served as an additional bearish catalyst for USD/JPY.

In case USD/JPY settles below the 50 MA at 156.79, it will head towards the nearest support level, which is located in the 154.50 – 155.00 range.

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