EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – Yen Under Pressure After BoJ Decision
- U.S. dollar is mostly flat as traders are not ready for big moves ahead of the weekend.
- EUR/USD settled near 1.0650 as traders reacted to weak PMI reports.
- GBP/USD remains under pressure after dovish BoE Interest Rate Decision.
U.S. Dollar Index is swinging between gains and losses as traders react to PMI reports. Manufacturing PMI improved from 47.9 in August to 48.9 in September, while Services PMI declined from 50.5 to 50.2.
Treasury yields are moving lower, which is bearish for the U.S. dollar. Most likely, U.S. Dollar Index will not be able to move above the resistance at 105.65 – 105.90 ahead of the weekend.
EUR/USD settled below the 1.0670 level as traders reacted to PMI reports from the EU. Manufacturing PMI declined from 43.5 to 43.4, while Services PMI increased from 47.9 to 48.4. The reports showed that European economy remained under significant pressure.
If EUR/USD moves below the 1.0650 level, it will head towards the nearest material support level, which is located in the 1.0520 – 1.0550 range.
GBP/USD is losing ground as traders stay focused on the recent decision of the BoE, which left the interest rate unchanged.
From the technical point of view, GBP/USD has settled below the support at 1.2300 – 1.2320 and is moving towards the next support level, which is located in the 1.2180 – 1.2200 range.
USD/CAD rebounds after the recent pullback as oil markets are moving lower.
In case USD/CAD climbs back above the resistance at 1.3500 – 1.3520, it will head towards the next resistance level at 1.3675 – 1.3700.
USD/JPY is trying to settle above the resistance at 148.00 – 149.00 as traders react to the BoJ Interest Rate Decision. As expected, the BoJ left the interest rate unchanged at -0.1%.
At this point, there are no signs of interventions from the BoJ. However, USD/JPY bulls will likely remain cautious ahead of the weekend.
For a look at all of today’s economic events, check out our economic calendar.