U.S. Dollar Gains Ground As Composite PMI Beats Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Traders Focus On PMI Data

U.S. Dollar Index gains ground as traders react to the better-than-expected Composite PMI report. The report indicated that Composite PMI increased from 52.9 in June to 54.6 in July, compared to analyst forecast of 52.9.

In case U.S. Dollar Index manages to settle above the 97.50 level, it will head towards the resistance level at 98.00 – 98.20.

EUR/USD Is Flat As ECB Leaves Rates Unchanged

EUR/USD is mostly flat as traders focus on the ECB Interest Rate Decision. The ECB left the interest rate unchanged at 2.15%, in line with analyst estimates.

If EUR/USD moves above the recent highs near the 1.1790 level, it will get to the test of the resistance level at 1.1815 – 1.1830.

GBP/USD Tests Support At 1.3500 – 1.3520

GBP/USD is losing ground as traders focus on the disappointing UK Services PMI report. The report showed that UK Services PMI pulled back from 52.8 in June to 51.2 in July, while analysts expected that it would increase to 53.

Currently, GBP/USD is trying to settle below the support at 1.3500 – 1.3520. In case this attempt is successful, GBP/USD will head towards the next support level, which is located in the 1.3370 – 1.3390 range.

USD/CAD Tests New Highs As Precious Metals Markets Pull Back

USD/CAD gains ground as traders react to the pullback in precious metals markets. Other commodity-related currencies are also losing ground in today’s trading session.

A successful test of the resistance level at 1.3650 – 1.3665 will open the way to the test of the next resistance at 1.3735 – 1.3750.

USD/JPY Attempts To Settle Back Above 147.00

USD/JPY is moving higher as traders focus on rising Treasury yields. The weaker-than-expected Japan Manufacturing PMI report put additional pressure on the Japanese yen.

From the technical point of view, USD/JPY needs to settle above the nearest resistance level at 147.50 – 148.00 to gain additional upside momentum in the near term.

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