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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats As Demand For Safe-Haven Assets Drops
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Forex traders have already started to prepare for the Fed decision, which will be released on Wednesday.
Key Insights
- EUR/USD settled above the 1.0600 level as Germany’s GDP Growth Rate exceeded analyst expectations.
- USD/CAD pulled back despite the strong sell-off in the oil markets.
- USD/JPY tested support at 149.00 as traders bet that BoJ will loosen its yield curve control.
U.S. Dollar
U.S. Dollar Index is losing ground despite rising Treasury yields. The appetite for riskier assets is rising, which is bearish for the American currency.
In case U.S. Dollar Index settles below the support at 105.65 – 105.90, it will head towards the next support level, which is located in the 104.50 – 104.75 range.
EUR/USD
EUR/USD is moving higher as traders react to the flash reading of Germany’s GDP Growth Rate report, which showed that GDP declined by 0.1%, compared to analyst consensus of -0.3%.
From the technical point of view, EUR/USD received strong support in the 1.0520 – 1.0550 range and is moving towards the nearest resistance, which is located in the 1.0670 – 1.0700 range.
GBP/USD
GBP/USD is also moving higher as traders focus on the general weakness of the American currency.
Currently, GBP/USD is trying to settle above the 1.2150 level. In case this attempt is successful, GBP/USD will get to the test of the nearest resistance at 1.2180 – 1.2200.
USD/CAD
USD/CAD pulls back despite the strong sell-off in the oil markets. The rising appetite for risk provides support to commodity-related currencies, including Canadian dollar.
If USD/CAD slips below the 1.3800 level, it will head towards the support, which is located in the 1.3675 – 1.3700 range.
USD/JPY
USD/JPY declined towards the 149.00 level as traders reacted to the reports which indicated that BoJ may tighten its ultra-loose policy. The yield of 10-year Japanese government bonds moved towards 0.90%, providing support to the yen.
The nearest support level for USD/JPY is located in the 148.00 – 149.00 range. If USD/JPY declines below the 148.00 level, it will head towards the next support at 144.65 – 145.00.
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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