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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – Yen Tests New Lows
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U.S. dollar stays strong against the Japanese currency as BoJ does not intervene to defend the yen.
Key Insights
- GBP/USD pulled back towards the 1.2200 level as traders reacted to the economic reports from the UK.
- USD/CAD gained ground as commodity-related currencies moved lower amid a strong pullback in precious metals markets.
- USD/JPY tested the 151.45 level as traders focused on the fundamental weakness of the Japanese currency.
U.S. Dollar
U.S. Dollar Index continues its attempts to settle above the 105.90 level as traders ignore the pullback in Treasury yields.
In case U.S. Dollar Index manages to settle above this level, it will head towards the resistance at 106.90 – 107.20. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum.
EUR/USD
EUR/USD settled near the support level at 1.0670 as traders reacted to Lagarde’s comments. The ECB President said that rates should stay high to push inflation back to the 2% target.
If EUR/USD manages to settle below the 1.0670 level, it will gain downside momentum and move towards the support at 1.0520 – 1.0550.
GBP/USD
GBP/USD is losing ground as traders react to the economic data from UK. GDP increased by 0.2% in September, compared to analyst consensus of 0%. Industrial Production remained unchanged, while analysts expected that it would grow by 0.1%.
GBP/USD moved towards the support at 1.2180 – 1.2200. It remains to be seen whether GBP/USD has enough catalysts to settle below this support level ahead of the weekend.
USD/CAD
USD/CAD moved higher despite the rebound in the oil markets. The sell-off in precious metals markets hurt commodity-related currencies, including Canadian dollar.
A successful test of the resistance at 1.3800 – 1.3830 will push USD/CAD towards the recent highs near 1.3900.
USD/JPY
USD/JPY is trying to settle above the 151.45 level amid a complete lack of positive catalysts for the Japanese yen.
The Japanese currency is fundamentally weak, and it looks that BoJ is not ready to defend the 150.00 level. It remains to be seen whether the central bank plans to intervene in case USD/JPY tests the 152.00 level.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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