EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Is Mostly Flat At The Start Of The Week

Key Insights

• EUR/USD settled near the 1.0900 level despite disappointing Ifo Business Climate report from Germany. 
• USD/CAD tests yearly lows below the 1.3150 level. 
• USD/JPY is mostly flat as Treasury markets lack dynamics.

U.S. Dollar

U.S. Dollar Index is mostly flat as traders wait for additional catalysts. Dallas Fed Manufacturing Index report exceeded expectations but did not provide material support to the American currency.

From the technical point of view, the current pullback looks healthy after the rapid rebound from the 102 level, and the U.S. Dollar Index has a decent chance to gain additional upside momentum in case the right catalysts emerge.

EUR/USD

EUR/USD is trying to settle back above the resistance in the 1.0900 – 1.0935 range. Today, traders focused on the Ifo Business Climate report, which showed that Business Climate declined from 91.5 in May to 88.5 in June, compared to analyst consensus of 90.7.

EUR/USD needs to settle above 1.0935 to continue its rebound from May lows. If EUR/USD climbs above 1.0935, it will head towards the next resistance in the 1.1070 – 1.1095 range.

GBP/USD

GBP/USD continues to consolidate after the strong rally in the first half of the month. The British pound has moved away from recent highs, but it looks that the market is not ready for a strong pullback despite hawkish Fed.

GBP/USD remains stuck in the wide 1.2630 – 1.2850 range. Currently, it is moving towards the low end of this range, but it remains to be seen whether it will be able to gain additional downside momentum.

USD/CAD

USD/CAD tests yearly lows amid rising demand for commodity-related currencies.

The current trend remains strong, and USD/CAD is moving towards the next support area in the 1.3080 – 1.3110 area. RSI is still in the moderate territory, which is a positive catalyst for USD/CAD bears.

USD/JPY

USD/JPY is mostly flat in today’s trading session as Treasury markets lack dynamics.

RSI is in the overbought territory, but there is no pullback as traders remain focused on the dynamics of Treasury yields. In case Treasury yields move higher, USD/JPY will head towards the 144.20 – 145.20 range.

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