EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back From Session Highs

Key Insights

• EUR/USD rebounded from session lows as traders reacted to Michigan Consumer Sentiment report. 
• USD/CAD remained stuck near the 1.3600 level. 
• USD/JPY was swinging between gains and losses as it tried to stabilize after yesterday’s sell-off. 

U.S. Dollar

U.S. Dollar Index gains some ground as traders react to economic data. Today, traders had a chance to take a look at Non Farm Payrolls report, which showed that the economy added 199,000 jobs in November. The U.S. dollar pulled back from session highs after the release of Michigan Consumer Sentiment report, which showed that year-ahead inflation expectations declined from 4.5% to 3.1%.

From the technical point of view, U.S. Dollar Index needs to settle above the 104.25 level to test the nearest resistance at 104.50 – 104.75.

EUR/USD

EUR/USD settled near 1.0765 as traders reacted to U.S. jobs data and Consumer Sentiment report. Today, traders also focused on the final reading of Germany’s inflation report. The report indicated that Inflation Rate declined from 3.8% in October to 3.2% in November, in line with the analyst consensus.

If EUR/USD manages to settle below the support at 1.0765 – 1.0790, it will move towards the next support level at 1.0660 – 1.0680.

GBP/USD

GBP/USD is moving lower as traders react to the Non Farm Payrolls report. However, it managed to move away from session lows after the release of Consumer Sentiment data. From a big picture point of view, GBP/USD continues to pull back from the highs that were reached in late November.

In case GBP/USD settles below the 1.2500 level, it will head towards the next support level at 1.2370 – 1.2410.

USD/CAD

USD/CAD remains stuck near the 1.3600 level despite the strong rebound in the oil markets. Other commodity-related currencies have found themselves under pressure in today’s trading session.

A successful test of the resistance at 1.3570 – 1.3600 will push USD/CAD towards the next resistance level, which is located in the 1.3675 – 1.3700 range.

USD/JPY

USD/JPY remains volatile after yesterday’s strong move, which was triggered by expectations of a rate hike from the BoJ. Today, traders also focused on GDP data from Japan. The country’s GDP Growth Rate was -0.7% in the third quarter, compared to analyst consensus of -0.5%.

The nearest resistance for USD/JPY is located in the 144.65 – 145.00 range. A successful test of this level will open the way to the test of the next resistance at 148.00 – 149.00.

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