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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds As Michigan Consumer Sentiment Beats Expectations
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The softer-than-expected PCE Price Index report did not put material pressure on the American currency.
Key Insights
- Euro gains ground as Euro Area inflation dips to 4.3%.
- GBP/USD pulled back towards 1.2200 after an unsuccessful attempt to settle above 1.2270.
- USD/JPY settled near the 149.50 level as BoJ did not intervene to provide support to the yen.
U.S. Dollar
U.S. Dollar Index rebounded from session lows as traders reacted to PCE Price Index report, which showed that PCE Price Index increased from 0.2% to 0.4% on a month-over-month basis, compared to analyst consensus of 0.5%.
From the technical point of view, U.S. Dollar Index received strong support in the 105.65 – 105.90 range. If U.S. Dollar Index declines below 105.65, it will gain additional downside momentum and move towards the support at 104.45 – 104.70.
EUR/USD
EUR/USD gained some ground as traders reacted to the EU inflation data. Euro Area Inflation Rate declined from 5.2% in August to 4.3% in September, compared to analyst consensus of 4.5%.
In case EUR/USD settles above the 50 MA at 1.0610, it will head towards the nearest resistance level, which is located in the 1.0670 – 1.0700 range.
GBP/USD
GBP/USD moved away from session highs as traders focused on U.S. economic data. The better-than-expected Michigan Consumer Sentiment report provided support to the American currency.
If GBP/USD settles back below the support at 1.2180 – 1.2200, it will head towards the next support level at 1.2000 – 1.2030.
USD/CAD
USD/CAD gained ground despite the encouraging GDP report from Canada, which showed that GDP increased by 0.1% month-over-month in August. Analysts expected that Canada’s GDP would decline by 0.1%.
USD/CAD has recently moved above the resistance at 1.3500 – 1.3520. If USD/CAD stays above the 1.3520 level, it will head towards the next resistance at 1.3675 – 1.3700.
USD/JPY
USD/JPY stays close to the 149.50 level as BoJ does not provide any support to the Japanese yen.
BoJ may intervene in case USD/JPY moves above the psychologically important 150.00 level. However, the Japenese yen remains fundamentally weak due to the ultra-dovish policy of BoJ, so bulls may try to push USD/JPY above the key 150.00 level.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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