EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats As Treasury Yields Pull Back

U.S. Dollar

U.S. Dollar Index rebounded from session lows as traders reacted to CB Leading Index report for January. The report indicated that CB Leading Index declined by 0.4% on a month-over-month basis, compared to analyst consensus of -0.3%.

The nearest support level for the U.S. Dollar Index is located in the 103.50 – 103.75 range. In case U.S. Dollar Index declines below this level, it will head towards the next support, which is located in the 102.80 – 103.00 range.

EUR/USD

EUR/USD gained ground as traders focused on falling Treasury yields. The yield of 2-year Treasuries pulled back below the 4.60% level, while the yield of 10-year Treasuries settled near 4.25%.

In case EUR/USD manages to settle above the resistance at 1.0810 – 1.0830, it will head towards the next resistance at 1.0900 – 1.0920.

GBP/USD

GBP/USD rebounded towards 1.2650, supported by general strength of the American currency.

RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. A move above the resistance at 1.2650 – 1.2685 will open the way to the test of the next resistance at 1.2800 – 1.2825.

USD/CAD

USD/CAD is moving higher as traders focus on inflation data from Canada. Inflation Rate declined from 3.4% in December to 2.9% in January, compared to analyst consensus of 3.3%.

From the technical point of view, USD/CAD received strong support in the 1.3480 – 1.3500 range and is trying to gain upside momentum. In case this attempt is successful, USD/CAD will head towards the resistance at 1.3600 – 1.3620.

USD/JPY

USD/JPY pulled back below the 150 level as Treasury yields declined. Dynamics of U.S. debt markets remain the key catalyst for USD/JPY as the BoJ sticks to its ultra-dovish policy.

A move below the support at 149.50 – 150.00 will push USD/JPY towards the next support level at 147.00 – 147.50.

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