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

U.S. Dollar Moves Higher As Traders Focus On ISM Services PMI Report

U.S. Dollar Index gains ground as traders react to the better-than-expected ISM Services PMI report. The report indicated that ISM Services PMI increased from 50.1 in July to 52.0 in August, compared to analyst forecast of 51.

In case U.S. Dollar Index climbs above the 98.50 level, it will head towards the resistance level at 99.20 – 99.40.

EUR/USD Pulls Back As Euro Area Retail Sales Miss Estimates

EUR/USD pulls back as traders focus on the weak Euro Area Retail Sales report. The report showed that Retail Sales declined by -0.5% month-over-month in July, compared to analyst consensus of -0.2%.

If EUR/USD stays below the 50 MA at 1.1658, it will move towards the nearest support, which is located in the 1.1575 – 1.1590 range.

GBP/USD Is Under Pressure

GBP/USD is losing ground as traders react to UK Construction PMI report, which indicated that Construction PMI increased from 44.3 in July to 45.5 in August. Numbers below 50 show contraction.

A successful test of the support at 1.3400 – 1.3415 will open the way to the test of the next support at 1.3315 – 1.3330.

USD/CAD Tests Resistance At 1.3845 – 1.3860

USD/CAD gains ground as traders react to the pullback in commodity markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the resistance at 1.3845 – 1.3860 will open the way to the test of the next resistance at 1.3910 – 1.3925.

USD/JPY Gains Ground As Traders Ignore Falling Treasury Yields

USD/JPY moved higher despite the pullback in Treasury yields as traders focused on general strength of the American currency.

If USD/JPY manages to settle above the 149.00 level, it will move towards the resistance level at 151.00 – 151.50.

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