EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats Ahead Of The Weekend

U.S. Dollar

U.S. Dollar Index is losing ground as traders react to the Durable Goods Orders report, whcih showed that Durable Goods Orders increased by 0.7% month-over-month in April. Durable Goods Orders Ex Transp increased by 0.4%. Today, traders also had a chance to take a look at the Michigan Consumer Sentiment report for May. The report showed that Consumer Sentiment declined from 77.2 to 69.1, compared to analyst consensus of 67.5.

The nearest support level for U.S. Dollar Index is located in the 104.40 – 104.60 range. A move below 104.40 will open the way to the test of the support at 103.75 – 103.90.

EUR/USD

EUR/USD gained ground after the release of Germany’s GDP Growth Rate data, which showed that GDP Growth Rate was 0.2% in the first quarter. The report met analyst estimates.

A move above the resistance at 1.0870 – 1.0885 will open the way to the test of the next resistance level at 1.0960 – 1.0980.

GBP/USD

GBP/USD is moving higher despite the disappointing UK Retail Sales report, which indicated that UK Retail Sales declined by 2.3% month-over-month in April.

If GBP/USD climbs above the 1.2750 level, it will get to the test of the resistance at 1.2780 – 1.2800.

USD/CAD

USD/CAD is losing ground as traders react to Canada’s Retail Sales report, which showed that Retail Sales declined by 0.2% month-over-month in March.

A move below the 1.3650 level will push USD/CAD towards the nearest support, which is located in the 1.3600 – 1.3620 range.

USD/JPY

USD/JPY is mostly flat as traders react to Japan’s inflation data. Inflation Rate declined from 2.7% in March to 2.5% in April, while Core Inflation Rate decreased from 2.6% to 2.2%.

In case USD/JPY manages to settle above the 157.00 level, it will move towards the key resistance at 158.00 – 158.50. Most likely, bulls will stay cautious as BoJ may intervene to support the Japanese yen.

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