EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs As Initial Jobless Claims Drop

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the Initial Jobless Claims report. The report indicated that 233,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 240,000. Continuing Jobless Claims increased from 18.69 million to 18.75 million. Treasury yields continue to move higher, which means that markets have calmed down. Rising Treasury yields provide additional support to U.S. dollar.

In case U.S. Dollar Index climbs above the resistance at 103.50 – 103.75, it will move towards the next resistance level at 104.40 – 104.60.

EUR/USD

EUR/USD pulls back as traders focus on dynamics of Treasury yields. There are no important economic reports scheduled to be released in the EU today, so traders will stay focused on general market sentiment.

If EUR/USD settles below the 1.0900 level, it will move towards the 50 MA at 1.0873.

GBP/USD

GBP/USD received strong support in the 1.2680 – 1.2700 area and managed to gain upside momentum.

A move above the 1.2750 level will push GBP/USD towards the resistance at 1.2780 – 1.2800.

USD/CAD

USD/CAD continues to move lower as commodity markets gain more ground. From a big picture point of view, demand for commodity-related currencies is rising after the recent panic.

In case USD/CAD declines below the 1.3700 level, it will move towards the support at 1.3600 – 1.3620.

USD/JPY

USD/JPY gains ground as traders focus on the recent comments from the BoJ, which indicated that it was not in a hurry to raise rates.

USD/JPY has recently managed to settle above the previous resistance at 146.00 – 146.50 and is moving higher. A move above the 148.00 level will push USD/JPY towards the next resistance, which is located in the 149.30 – 149.70 range.

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