U.S. Dollar Dives As Danish Pension Fund Sells Treasuries: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats As Traders Focus On Greenland

U.S. Dollar Index is under pressure as traders react to Danish pension fund’s decision to exit U.S. Treasuries. AkademikerPension announced that it would sell its Treasuries holdings by the end of January as U.S. government finances were not sustainable in the long term. Trump’s threats against Greenland have certainly played a role in this decision. Treasury yields moved higher as traders worried that other European funds may sell Treasuries in case the U.S. puts Greenland-related tariffs on the EU.

In case U.S. Dollar Index settles below the 98.50 level, it will head towards the support at 98.00 – 98.15.

EUR/USD Tests Resistance At 1.1715 – 1.1730

EUR/USD rallied as traders sold the U.S. dollar amid fears about the EU response to Trump’s tariff threats.

A successful test of the resistance at 1.1715 – 1.1730 will open the way to the test of the next resistance level at 1.1790 – 1.1805.

GBP/USD Gains Ground As UK Unemployment Rate Stays Unchanged At 5.1%

GBP/USD attempts to settle above the resistance at 1.3475 – 1.3490 as traders react to the Unemployment Rate report from the UK. The report indicated that Unemployment Rate remained unchanged at 5.1% in November, while analysts expected that it would drop to 5%.

In case GBP/USD manages to settle above the resistance at 1.3490, it will move towards the next resistance level, which is located in the 1.3570 – 1.3585 range.

USD/CAD Tests Support At 1.3815 – 1.3830

USD/CAD is losing ground as traders focus on rising commodity markets. Other commodity-related currencies have also moved higher in today’s trading session.

A successful test of the support at 1.3815 – 1.3830 will open the way to the test of the next support at 1.3735 – 1.3750.

USD/JPY Is Mostly Flat As Japan’s Bond Yields Touch Multi-Decade Highs

USD/JPY remains stuck near resistance at 158.00 – 158.50 as traders focus on the sell-off in Japan’s bond markets. Japan’s Finance Minister Katayama tried to calm markets, but the yield of 10-year bonds hit multi-decade highs above the 2.35% level.

A move above the 158.50 level will push USD/JPY towards the resistance level at 161.50 – 162.00.

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