U.S. Dollar Moves Higher As Global Bond Sell-Off Continues
U.S. Dollar Index moved higher amid global bond sell-off. Today, European bonds found themselves under strong pressure. The yield of France’s 10-year bonds climbed above 4.86%, while the yield of UK’s 10-year bonds tested the 5.50% level.
Traders also prepared for FOMC Minutes, which would be released today. Hawkish Minutes may provide additional support to the American currency.
Currently, U.S. Dollar Index is trying to settle above the resistance level at 102.35 – 102.50. If U.S. Dollar Index manages to settle above the 102.50 level, it will head towards the next resistance, which is located in the 103.15 – 103.30 range.
EUR/USD Tests Support At 1.1175 – 1.1190
EUR/USD is losing ground as traders focus on the sell-off in European bond markets and react to the better-than-expected Industrial Production report from Germany. The report indicated that Germany’s Industrial Production increased by +2% month-over-month in August, compared to analyst forecast of +0.5%.
EUR/USD attempts to settle below the support level at 1.1175 – 1.1190. If EUR/USD manages to settle below the 1.1175 level, it will head towards the next support level, which is located in the 1.1070 – 1.1090 range.
GBP/USD Retreats As UK 10-Year Yield Hits 5.50%
GBP/USD pulled back as traders focused on the situation in bond markets and reacted to Lloyds House Price Index report from the UK. The report showed that house prices were unchanged on a year-over-year basis in September, compared to analyst forecast of -0.2%.
The nearest support level for GBP/USD is located in the 1.3150 – 1.3165 range. If GBP/USD manages to settle below the 1.3150 level, it will head towards the next support at 1.3030 – 1.3050. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
EUR/USD Price Forecast
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See all EUR/USD forecastsUSD/CAD Gains Ground Amid Pullback In Precious Metals Markets
USD/CAD moved higher as traders focused on the strong pullback in precious metals markets. Gold declined by -1.2%, while silver pulled back by -2.1%. Other commodity-related currencies have also found themselves under pressure.
USD/CAD failed to settle below the 50 MA at 1.4215 and is trying to climb above the resistance level at 1.4235 – 1.4250. If this attempt is successful, USD/CAD will head towards the next resistance, which is located in the 1.4350 – 1.4365 range.
USD/JPY Is Stuck Near Key Resistance Level
USD/JPY remains stuck near the resistance level at 158.00 – 158.50 despite rising Treasury yields. The yield of 10-year Treasuries settled near the 5.32% level, while the yield of 30-year Treasuries continued its attempts to settle above 5.70%. Interestingly, recent hawkish comments from BoJ Governor Ueda did not provide material support to the Japanese yen.
From the technical point of view, USD/JPY continues its attempts to settle above the 158.50 level. If USD/JPY settles above 158.50, it will head towards the next resistance, which is located in the 160.00 – 160.50.
On the support side, a move below the 50 MA at 157.72 will open the way to the test of the 157.00 level. In case USD/JPY declines below 157.00, it will head towards the support level at 155.00 – 155.50.
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