EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Stays Strong Ahead Of The Weekend

Key Insights

• GBP/USD continues its attempts to settle below the 1.2850 level. 
• USD/CAD climbed above the 1.3200 level as traders reacted to Canada’s Retail Sales report. 
• USD/JPY moved closer to the 142 level as Japan’s inflation reports missed analyst expectations. 

U.S. Dollar

U.S. Dollar Index is moving higher despite the pullback in longer-term Treasury yields. Traders believe that the U.S. Dollar Index has found a local bottom near the 100 level.

Currently, U.S. Dollar Index is trying to settle above the resistance at 101.00 – 101.15. In case this attempt is successful, U.S. Dollar Index will head towards the resistance at 102.00 – 102.15.

EUR/USD

EUR/USD is mostly flat in today’s trading as traders wait for additional catalysts.

The nearest support level for EUR/USD is located in the 1.1070 – 1.1095 range. RSI remains in the moderate territory, so EUR/USD has a decent chance to gain additional momentum in case the right catalysts emerge.

GBP/USD

GBP/USD moved lower as traders reacted to the Retail Sales report from the UK. The report indicated that Retail Sales increased by 0.7% month-over-month in June, compared to analyst consensus of +0.2%.

In case GBP/USD declines below the support at 1.2820, it will move towards the next support level, which is located in the 1.2725 – 1.2750 range.

USD/CAD

USD/CAD gained ground as traders reacted to Canada’s Retail Sales data. Retail Sales grew by 0.2% month-over-month in May, while analysts expected that they would increase by 0.5%.

The nearest resistance for USD/CAD is located in the 1.3240 – 1.3265 range. A move above this level will push USD/CAD towards monthly highs in the 1.3360 – 1.3380 range.

USD/JPY

USD/JPY continues to rebound after Japan’s inflation reports, which showed that Inflation Rate increased from 3.2% in May to 3.3% in June, compared to analyst consensus of 3.5%. Inflation stays low despite the ultra-dovish policy of the BoJ.

A move above the resistance at 141.85 – 142.35 will open the way to the test of the next resistance level at 144.70 – 145.00.

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