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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs After PPI Report

By:
Vladimir Zernov
Published: Apr 11, 2024, 16:22 GMT+00:00

Key Points:

  • EUR/USD pulled back towards 1.0700 as traders reacted to ECB Interest Rate Decision.
  • USD/CAD gained ground as Treasury yields tested new highs.
  • USD/JPY settled above the 153.00 level.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 110424 4h Chart

U.S. Dollar Index gains ground as traders react to Producer Prices report. PPI increased by 0.2% month-over-month in March, compared to analyst consensus of +0.3%. Core PPI grew by 0.2%, in line with the analyst consensus. From a big picture point of view, U.S. Dollar Index is supported by inflation data, which was released yesterday.

A move above the 105.50 level will push U.S. Dollar Index towards the nearest resistance, which is located in the 105.75 – 106.00 range.

EUR/USD

EUR/USD
EUR/USD 110424 4h Chart

EUR/USD tests new lows as traders react to the ECB Interest Rate Decision. ECB left the interest rate unchanged and noted that its decisions did not depend on what the Fed was doing. Currently, ECB is expected to be more dovish than Fed, which is bearish for the euro.

In case EUR/USD settles below the support at 1.0700 – 1.0720, it will head towards the next support level, which is located in the 1.0600 – 1.0625 range.

GBP/USD

GBP/USD
GBP/USD 110424 4h Chart

GBP/USD continues its attempts to settle below the support at 1.2530 – 1.2550 as traders focus on rising Treasury yields. The yield of 10-year Treasuries is trying to settle above multi-month highs at 4.60%.

If GBP/USD settles below 1.2530, it will move towards the next support level at 1.2425 – 1.2450.

USD/CAD

USD/CAD
USD/CAD 110424 4h Chart

USD/CAD tested new highs as traders focused on general strength of the U.S. dollar.

From the technical point of view, USD/CAD is moving towards the nearest significant resistance level at 1.3780 – 1.3800.

USD/JPY

USD/JPY
USD/JPY 110424 4h Chart

USD/JPY tests new highs as the rally continues after the successful test of the previous resistance at 151.50 – 152.00.

There are no signs of interventions from the BoJ, which is bullish for USD/JPY. At some point, BoJ may intervene, but it remains to be seen whether the central bank is ready to provide support to the yen until USD/JPY reaches the 155.00 level.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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