EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs As NAHB Housing Market Index Beats Expectations

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the better-than-expected NAHB Housing Market Index report. The report indicated that NAHB Housing Market Index improved from 48 in February to 51 in March, compared to analyst consensus of 48.

In case U.S. Dollar Index manages to settle above the resistance at 103.50 – 103.75, it will head towards the next resistance level, which is located in the 104.40 – 104.60 range.

EUR/USD

EUR/USD is losing some ground as traders focus on the final rading of the Euro Area Inflation Rate report for February. The report indicated that Inflation Rate declined from 2.8% in January to 2.6% in February, in line with the analyst consensus.

If EUR/USD pulls back below the 1.0850 level, it will move towards the next support, which is located in the 1.0810 – 1.0830 range.

GBP/USD

GBP/USD is moving lower as traders focus on general dynamics of the American currency.

A move below 1.2720 will push GBP/USD towards the nearest support at 1.2650 – 1.2685.

USD/CAD

USD/CAD is mostly flat despite rising oil markets. Other commodity-related currencies are also flat in today’s trading session.

In case USD/CAD climbs above the 1.3550 level, it will head towards the next resistance at 1.3600 – 1.3620.

USD/JPY

USD/JPY continues to move higher ahead of the BoJ Interest Rate Decision, which will be released tomorrow. Analysts expect that BoJ will raise the interest rate from -0.1% to 0%.

A move above the 150.00 level will provide USD/JPY with a chance to gain additional upside momentum. It should be noted that traders will also focus on BoJ’s commentary after the release of the Interest Rate Decision. Japan’s central bank is expected to start moving away from its ultra-dovish policy, which may have a material impact on USD/JPY dynamics.

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