EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Some Ground In Quiet Trading

Key Insights

• EUR/USD moved closer to the 1.0900 level. 
• GBP/USD pulled back towards 1.2800 amid profit-taking. 
• USD/CAD settled near 1.3200. 

U.S. Dollar

U.S. Dollar Index continues to move higher as traders focus on rising Treasury yields. The yield of 2-year Treasuries moved from 4.40% to 4.75% in less than a month.

U.S. Dollar Index received strong support near the 102 level and is slowly moving towards the next resistance in the 103.25 – 103.45 range.

EUR/USD

EUR/USD is moving lower as traders continue to take profits off the table after the recent rally.

It should be noted that EUR/USD failed to settle above the 1.0900 – 1.0935 resistance area, and it will likely need additional catalysts to test new highs.

GBP/USD

GBP/USD has also moved lower in absence of economic news, but this move was not strong.

From the technical point of view, there is a big gap between the current prices and the next resistance area on the daily chart, so GBP/USD has a good chance to develop additional upside momentum in the upcoming days.

USD/CAD

USD/CAD stabilized near the 1.3200 level as traders waited for additional news. Oil markets pulled back, but this move did not have a material impact ont he dynamics of the Canadian dollar.

Trading action is calm due to the holiday in the U.S., but USD/CAD bulls should be prepared for a sell-off if USD/CAD manages to settle below 1.3180.

USD/JPY

USD/JPY settled near yearly highs as the yen remains under pressure after the recent BoJ Interest Rate Decision.

The ultra-dovish policy of the BoJ remains the key negative catalyst for the yen, and USD/JPY looks ready to test the high end of the current resistance area at 142.35.

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