EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds From Multi-Month Lows

Key Insights

• EUR/USD pulled back as Germany’s inflation missed analyst expectations. 
• GBP/USD settled near 1.2700 as traders waited for catalysts. 
• USD/CAD made an attempt to climb above 1.3600 despite rising oil markets. 

U.S. Dollar

U.S. Dollar Index gains some ground as traders react to the better-than-expected GDP Growth Rate report, which indicated that GDP Growth Rate was 5.2% in the third quarter.

In case U.S. Dollar Index climbs back above the 103.00 level, it will head towards the next resistance at 103.50 – 103.75.

EUR/USD

EUR/USD pulls back as traders focus on the inflation data from Germany. Inflation Rate declined from 3.8% in October to 3.2% in November, compared to analyst consensus of 3.5%.

The nearest support level for EUR/USD is located in the 1.0925 – 1.0950 range. A move below 1.0925 will push EUR/USD towards the next support at 1.0765 – 1.0790.

GBP/USD

GBP/USD is mostly flat as traders wait for additional catalysts. At this point, the rebound of the U.S. Dollar Index did not put significant pressure on GBP/USD.

In case GBP/USD manages to stay above the 1.2685 level, it will head towards the next resistance, which is located in the 1.2820 – 1.2850 range.

USD/CAD

USD/CAD rebounds despite rising oil markets as traders take some profits off the table after the recent move.

If USD/CAD settles above the 1.3600 level, it will head towards the nearest resistance at 1.3675 – 1.3700.

USD/JPY

USD/JPY settled below the 148.00 level and is trying to settle below 147.50. USD/JPY remains under pressure as traders expect that Fed will start cutting rates in the first half of 2024.

In case USD/JPY manages to settle below 147.50, it will head towards the support at 144.65 – 145.00.

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