EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back On Profit-Taking

Key Insights

• EUR/USD is trying to settle above 1.0750 despite the weak Euro Area Retail Sales report. 
• GBP/USD received strong support near 1.2520 and rebounded towards the 1.2600 level.
• USD/JPY pulled back towards the 148.00 level as Treasury yields declined. 

U.S. Dollar

U.S. Dollar Index is losing ground as traders take some profits off the table after the recent rally. Treasury yields are moving lower, which is bearish for the American currency.

In case U.S. Dollar Index declines below the 104.00 level, it will head towards the support at 103.50 – 103.75.

EUR/USD

EUR/USD is trying to rebound despite the weak Euro Area Retail Sales report, which showed that Retail Sales declined by 1.1% month-over-month in December.

If EUR/USD manages to settle back above the 1.0750 level, it will move towards the resistance at 1.0810 – 1.0830.

GBP/USD

GBP/USD gains ground as traders react to the better-than-expected Construction PMI report. UK Construction PMI increased from 46.8 in December to 48.8 in January, compared to analyst consensus of 47.3.

A move above the 1.2600 level will open the way to the test of the nearest resistance, which is located in the 1.2650 – 1.2685 range.

USD/CAD

USD/CAD pulls back as oil markets rebound from recent lows. Other commodity-related currencies are also moving higher in today’s trading session.

The nearest support for USD/CAD is located in the 1.3480 – 1.3500 range. A successful test of this support level will push USD/CAD towards the next support at 1.3380 – 1.3410.

USD/JPY

USD/JPY is losing ground as traders focus on the pullback in Treasury yields.

In case USD/JPY declines below the 148.00 level, it will move towards the nearest support at 147.00 – 147.50.

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