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

Key Insights

• EUR/USD pulls back as Germany’s exports declined by 0.2% in October. 
• GBP/USD moved towards the 1.2600 level as bulls continued to take profits near multi-month highs. 
• USD/JPY rebounded above 147.00 as Treasury yields moved higher. 

U.S. Dollar

U.S. Dollar Index tests resistance at 103.50 – 103.75 as traders react to the Factory Orders report, which indicated that Factory Orders declined by 3.6% month-over-month in October. Traders also focus on the rebound in Treasury yields, which is bullish for the American currency.

In case U.S. Dollar Index settles above the 103.75 level, it will head towards the next resistance, which is located in the 104.50 – 104.75 range.

EUR/USD

EUR/USD is losing ground as traders react to the weak Exports data from Germany. The report indicated that Germany’s Exports declined by 0.2%, compared to analyst consensus of +1.1%.

If EUR/USD settles below the 1.0800 level, it will get to the test of the support at 1.0765 – 1.0790.

GBP/USD

GBP/USD pulls back as traders focus on the general strength of the U.S. dollar. In addition, GBP/USD bulls want to take some profits off the tabel near multi-month highs.

In case GBP/USD settles below the 1.2600 level, it will continue to move the nearest significant support at 1.2370 – 1.2410.

USD/CAD

USD/CAD gains some ground despite the pullback in the oil markets. Some traders are ready to bet on a rebound after the recent pullback.

The nearest resistance for USD/CAD is located in the 1.3570 – 1.3600 range. A move above 1.3600 will push USD/CAD towards the resistance at 1.3675 – 1.3700.

USD/JPY

USD/JPY moved back above the 147.00 level as Treasury yields rebounded from recent lows.

In case USD/JPY settles above the 147.00 level, it will head towards the nearest resistance at 148.00 – 149.00.

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