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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs As Treasury Yields Rise

By:
Vladimir Zernov
Published: Apr 16, 2024, 16:23 GMT+00:00

Key Points:

  • EUR/USD is mostly flat as traders react to the ZEW Economic Sentiment Index report.
  • USD/CAD tested new highs, supported by rising Treasury yields.
  • USD/JPY is moving towards the key 155.00 level.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 160424 4h Chart

U.S. Dollar Index gains some ground as traders react to the economic reports. Building Permits declined by 4.3% month-over-month in March, compared to analyst consensus of -0.7%. Housing Starts decreased by 14.7%, while analysts expected that they would decline by 0.8%. Industrial Production increased by 0.4%, in line with analyst expectations. Treasury yields tested new highs, providing additional support to the American currency.

In case U.S. Dollar Index settles above the 106.50 level, it will head towards the next resistance, which is located in the 107.10 – 107.35 range.

EUR/USD

EUR/USD
EUR/USD 160424 4h Chart

EUR/USD is mostly flat as traders react to the better-than-expected ZEW Economic Sentiment Index report. The report showed that Euro Area Economic Sentiment improved from 33.5 in March to 43.9 in April.

If EUR/USD manages to settle below the support at 1.0600 – 1.0625, it will head towards the next support level, which is located in the 1.0500 – 1.0525 range.

GBP/USD

GBP/USD
GBP/USD 160424 4h Chart

GBP/USD continues its attempts to settle below the support at 1.2425 – 1.2450 as traders focus on the Unemployment Rate report from the UK. The report showed that Unemployment Rate increased from 4% in January to 4.2% in February, compared to analyst consensus of 4%.

A successful test of the support at 1.2425 – 1.2450 will push GBP/USD towards the next support level at 1.2310 – 1.2330.

USD/CAD

USD/CAD
USD/CAD 160424 4h Chart

USD/CAD tested new highs as traders focused on rising Treasury yields. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above 1.3850 will open the way to the test of the next resistance level at 1.3880 – 1.3900.

USD/JPY

USD/JPY
USD/JPY 160424 4h Chart

USD/JPY tested new highs as the rally continued. It looks that BoJ may have intervened when USD/JPY was trading above the 154.70 level, but USD/JPY has quickly rebounded after the sell-off.

From the technical point of view, USD/JPY is moving towards the psychologically important 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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