EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground As Treasury Yields Rise

Key Insights

• EUR/USD remains stuck near the 1.1000 level as traders react to the weak Industrial Production report from Germany.  
• GBP/USD settled above the 1.2750 level as traders focused on the Halifax House Price Index report. 
• USD/JPY is testing the 142.50 level as Treasury yields reise. 

U.S. Dollar

U.S. Dollar Index gains some ground while traders wait for additional catalysts. There are no important economic reports scheduled to be released today in the U.S., so traders will remain focused on general market sentiment.

In case U.S. Dollar Index manages to stay above the support at 102.00 – 102.15, it will head towards the resistance in the 103.40 – 103.65 range.

EUR/USD

EUR/USD settled near the 1.1000 level as traders reacted to Germany’s Industrial Production report, which indicated that Industrial Production declined by 1.5% month-over-month in June.

The nearest support level for EUR/USD is located in the 1.0950 – 1.0975 range. A move below 1.0950 will open the way to the test of the support at 1.0835 – 1.0850.

GBP/USD

GBP/USD moved higher after the release of Halifax House Price Index report, which showed that house prices declined by 0.3% month-over-month in July, compared to analyst consensus of -0.3%.

In case GBP/USD stays above the 1.2750 level, it will gain additional upside momentum and move towards the 200 MA at 1.2825.

USD/CAD

USD/CAD continues its attempts to settle above the resisance at 1.3360 – 1.3380. Commodity-related currencies are mostly flat today, and it remains to be seen whether Canadian dollar will be able to gain momentum.

If USD/CAD moves back below the 1.3360 level, it will head towards the support, which is located in the 1.3240 – 1.3265 range.

USD/JPY

USD/JPY moved above the 142.50 level as traders focused on rising Treasury yields.

In case USD/JPY manages to settle above 142.50, it will head towards the resistance, which is located in the 144.65 – 145.00 range.

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