EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats As Home Builder Confidence Falls To New Lows

Key Insights

• EUR/USD moved towards the 1.0600 level as Euro Area Economic Sentiment improved. 
• GBP/USD remained stuck near the 1.2200 level. 
• USD/CAD pulled back as traders reacted to Canada’s inflation reports. 

U.S. Dollar

U.S. Dollar Index pulls back as traders react to the NAHB Housing Market Index report, which indicated that high interest rates put material pressure on the housing market.

The nearest support level for U.S. Dollar Index is located in the 105.65 – 105.90 range. A move below 105.65 will open the way to the test of the next support at 104.50 – 104.75.

EUR/USD

EUR/USD gained ground after the release of the Euro Area ZEW Economic Sentiment Index report, which showed that Economic Sentiment improved from -8.9 in September to +2.3 in October.

In case EUR/USD climbs above 1.0600, it will head towards the nearest resistance at 1.0670 – 1.0700.

GBP/USD

GBP/USD remains stuck near the 1.2200 level as traders wait for additional catalysts. Interestingly, rising Treasury yields did not put pressure on GBP/USD.

If GBP/USD settles above 1.2200, it will move towards the next resistance, which is located in the 1.2370 – 1.2410 range.

USD/CAD

USD/CAD faced resistance near 1.3700 and pulled back as traders reacted to Canada’s inflation data. Inflation Rate declined from 4% in August to 3.8% in September, while Core Inflation Rate decreased from 3.3% to 2.8%.

If USD/CAD settles back below the 1.3600 level, it will head towards the support at 1.3500 – 1.3520.

USD/JPY

USD/JPY remains stuck below the 150.00 level. The fear of BoJ interventions remains the only catalyst that prevents USD/JPY from moving above this psychologically important level.

From the technical point of view, a successful test of the 150.00 level will provide USD/JPY with a chance to gain strong upside momentum.

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