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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs
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U.S. dollar gains ground as traders focus on recent changes in Fed policy outlook.
Key Insights
- EUR/USD pulled back below the 1.0850 level after the release of the Euro Area Consumer Confidence report.
- GBP/USD declined towards 1.2650 as traders focused on rising Treasury yields.
- USD/JPY moved higher as traders reacted to the BoJ Interest Rate Decision.
U.S. Dollar
U.S. Dollar Index tests new highs as traders focus on rising Treasury yields. The yield of 2-year Treasuries settled above the 4.40% level, while the yield of 10-year Treasuries climbed back towards 4.15%.
In case U.S. Dollar Index settles above the resistance at 103.50 – 103.75, it will move towards the next resistance, which is located in the 104.35 – 104.55 range.
EUR/USD
EUR/USD is losing ground as traders react to the disappointing Euro Area Consumer Confidence report, which showed that Consumer Confidence declined from -15.1 in December to -16.1 in January.
If EUR/USD pulls back below the support at 1.0810 – 1.0830, it will move towards the next support level at 1.0730 – 1.0750.
GBP/USD
GBP/USD retreats as traders focus on general strength of the American currency.
A successful test of the support at 1.2650 – 1.2685 will open the way to the test of the next support level at 1.2500 – 1.2520.
USD/CAD
USD/CAD is mostly flat as traders wait for additional catalysts. The rebound in commodity markets did not provide support to the Canadian currency.
A move above the resistance at 1.3480 – 1.3500 will open the way to the test of the next resistance at 1.3590 – 1.3620.
USD/JPY
USD/JPY gains ground as traders react to BoJ Interest Rate Decision. Japan’s central bank left the interest rate unchanged at -0.1%, in line with the analyst consensus. The central bank promised to provide additional stimulus to the economy if neccessary. BoJ’s policy remains ultra-dovish, which is bearish for the Japanese yen.
If USD/JPY settles above the 148.50 level, it will head towards the nearest resistance, which is located in the 149.50 – 150.00 range.
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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