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

Key Insights

• EUR/USD settled below the 1.0900 level as Euro Area Services PMI report missed expectations. 
• GBP/USD remained stuck near the 1.2700 level. 
• USD/CAD gained ground despite rising oil prices. 

U.S. Dollar

U.S. Dollar Index is moving higher as traders react to the Factory Orders report, which showed that Factory Orders increased by 0.3% month-over-month in May, compared to analyst consensus of +0.8%.

From the technical point of view, U.S. Dollar Index is trying to settle above the resistance in the 103.25 – 103.45 range. In case this attempt is successful, the U.S. Dollar Index will head towards the next resistance in the 104.50 – 104.75 range.

EUR/USD

EUR/USD is under pressure after the release of the Euro Area Services PMI report, which showed that Euro Area Services PMI declined from 55.1 in May to 52 in June, compared to analyst consensus of 52.4. Numbers above 50 show expansion.

EUR/USD failed to settle above the 50 MA and is moving towards the support level in the 1.0800 – 1.0825 range. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum.

GBP/USD

GBP/USD is mostly flat after UK Services PMI report met analyst expectations. The general strength of the U.S. dollar has put some pressure on GBP/USD in today’s trading session.

GBP/USD has stabilized above the 50 MA at 1.2695 and has a good chance to gain additional upside momentum in case it manages to stay above this level.

USD/CAD

USD/CAD gained ground despite the rebound in the oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

If USD/CAD stays above the resistance at 1.3240 – 1.3265, it will head towards the next resistance level, which is located in the 1.3360 – 1.3380 range.

USD/JPY

USD/JPY remains stuck in a tight range. Treasury yields are moving higher, which is bullish for USD/JPY, but profit-taking provides some support to the Japanese yen.

The technical picture has not changed in recent trading sessions. USD/JPY settled in the 144.20 – 145.20 resistance area as traders wait for additional catalysts. On the daily chart, RSI remains in the overbought territory, which is a bearish factor for USD/JPY.

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