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

Key Insights

• EUR/USD settled above 1.0600 after Euro Area Manufacturing PMI exceeded analyst expectations. 
• GBP/USD gained some ground after BoE left the interest rate unchanged. 
• USD/CAD pulled back below 1.3800 as oil markets moved away from recent lows.

U.S. Dollar

U.S. Dollar Index moved away from session lows as traders reacted to the Initial Jobless Claims report, which showed that 217,000 Americans filed for unemployment benefits in a week.

From the technical point of view, U.S. Dollar Index found support near 105.90 and stays range-bound between 105.65 and 107.20.

EUR/USD

EUR/USD settled above the 1.0600 level as traders reacted to the final reading of the Euro Area Manufacturing PMI report, which showed that Manufacturing PMI declined from 43.4 in September to 43.1 in October.

The nearest resistance for EUR/USD is located in the 1.0670 – 1.0700 range. If EUR/USD climbs above 1.0700, it will head towards the resistance at 1.0765 – 1.0790.

GBP/USD

GBP/USD gained some ground after BoE left the interest rate unchanged at 5.25%. The decision was supported by six votes, while the hike attracted three votes.

GBP/USD did not manage to settle above the 1.2200 level and may remain range-bound as traders wait for additional catalysts.

USD/CAD

USD/CAD is losing ground as oil markets rebound after the recent pullback. Other commodity-related currencies also enjoy strong support in today’s trading session.

In case USD/CAD settles below the 1.3800 level, it will head towards the next support, which is located in the 1.3675 – 1.3700 range.

USD/JPY

USD/JPY has recently made an attempt to settle below the 150.00 level but failed to develop sufficient momentum.

The Japanese yen remains fundamentally weak, so traders used the recent pullback as an opportunity to increase their long positions in USD/JPY.

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