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

Key Insights

• EUR/USD pulled back below the 1.1150 level. 
• GBP/USD is trying to settle below the support in the 1.2820 – 1.2850 range. 
• USD/JPY tests resistance at 140.45 – 140.80.

U.S. Dollar

U.S. Dollar Index continues to rebound from recent lows as traders react to the economic reports. Initial Jobless Claims declined from 237,000 to 228,000, compared to analyst consensus of 242,000. Existing Homes Sales decreased by 3.3% month-over-month in June.

In case U.S. Dollar Index settles above the resistance in the 101.00 – 101.15 range, it will head towards the next resistance level, which is located at 102.00 – 102.15.

EUR/USD

EUR/USD pulls back as traders react to the Producer Prices report from Germany, which indicated that PPI declined by 0.3% month-over-month in June.

EUR/USD has already managed to settle below the previous support at 1.1170 and is moving towards the next support area in the 1.1070 – 1.1095 range. RSI remains in the moderate territory, so there is enough room to gain additional downside momentum.

GBP/USD

GBP/USD is trying to settle below the support in the 1.2820 – 1.2850 range as the pullback continues.

A move below the 1.2820 level will open the way to the test of the support at 1.2725 – 1.2750. The 200 MA is located at 1.2750, so GBP/USD may get strong support in this area.

USD/CAD

USD/CAD rebounds as traders focus on the general strength of the U.S. dollar. Oil markets are mostly flat today, which is not bullish for the Canadian dollar.

If USD/CAD settles back above the 50 MA at 1.3195, it will move towards the resistance in the 1.3240 – 1.3265 range.

USD/JPY

USD/JPY is moving higher as Treasury yields gained strong upside momentum. The yield of 2-year Treasuries settled above the 4.85% level, while the yield of 10-year Treasuries moved above 3.85%.

Currently, USD/JPY is trying to settle above the resistance at 140.45 – 140.80. In case this attempt is successful, it will head towards the next resistance level at 141.85 – 142.35.

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