U.S. Dollar Moves Higher As Traders Focus On Consumer Sentiment Data
U.S. Dollar Index gains ground as traders focus on Michigan Consumer Sentiment report. The report indicated that Michigan Consumer Sentiment declined from 48.1 in September to 46.3 in October, compared to analyst forecast of 47.6.
Year-ahead inflation expectations increased from 4.6% in September to 4.7% in September. Long-run inflation expectations grew from 3.4% to 3.5%.
U.S. Dollar Index continues its attempts 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 Retreats As European Debt Markets Remain Under Pressure
EUR/USD pulls back as traders react to the continuation of the sell-off in European debt markets. Traders are worried that the situation may get out of control.
Currently, EUR/USD is trying 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 at 1.1075 – 1.1090.
GBP/USD Is Flat Ahead Of The Weekend
GBP/USD is mostly flat as traders are not ready for big moves ahead of the weekend. Rising Treasury yields did not provide support to GBP/USD in today’s trading session. The yield of 2-year Treasuries settled above the 4.80% level, while the yield of 10-year Treasuries climbed above 5.25%.
If GBP/USD moves below the 1.3200 level, it will head towards the nearest support, which is located in the 1.3150 – 1.3165 range. A successful test of the support at 1.3150 – 1.3165 will open the way to the test of the next at 1.3030 – 1.3045.
EUR/USD Price Forecast
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See all EUR/USD forecastsUSD/CAD Tests New Highs As Canada’s Job Data Disappoints
USD/CAD gains ground as traders react to Canada’s Unemployment Rate report. The report indicated that Unemployment Rate increased from 6.4% in August to 6.5% in September, in line with analyst estimates.
The Employment Change report showed that the economy lost -68,300 jobs in September, compared to analyst forecast of +7,000.
USD/CAD climbed above the resistance at 1.4235 – 1.4250 and made an attempt to settle above the 1.4300 level. If USD/CAD manages to settle above 1.4300, it will head towards the next resistance at 1.4350 – 1.4365.
USD/JPY Attempts To Settle Above 158.50
USD/JPY is trying to settle above the 158.50 level as traders focus on rising Treasury yields and react to Household Spending report from Japan. The report showed that Household Spending increased by +0.1% month-over-month in August, compared to analyst forecast of +0.5%. On a year-over-year basis, Household Spending declined by -3.1%, compared to analyst consensus of -3.6%.
USD/JPY has already made several attempts to climb above the 158.50 level, but these attempts yielded no results. If USD/JPY moves above 158.50, it will gain additional upside momentum and head towards the next resistance, which is located in the 160.00 – 160.50 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the support side, USD/JPY needs to settle below the 50 MA at 157.89 to gain downside momentum in the near term. In this case, USD/JPY will move towards the 157.00 level. In case USD/JPY declines below 157.00, it will head towards the support at 155.00 – 155.50.
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