U.S. Dollar Gains Ground As Traders Focus On Tariffs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests New Highs

U.S. Dollar Index gains ground as traders focus on tariffs. U.S. officials indicated that tariffs will start on August 1, so countries will have more time to negotiate. Recent reports indicate that Donald Trump will announce several trade deals soon.

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

EUR/USD Is Losing Ground As Traders React To Industrial Production Data From Germany

EUR/USD pulled back despite the better-than-expected Industrial Production report from Germany. The report showed that Industrial Production increased by +1.2% month-over-month in May, compared to analyst forecast of 0%.

If EUR/USD stays below the 1.1750 level, it will head towards the nearest support level at 1.1675 – 1.1690.

GBP/USD Is Mostly Flat At The Start Of The Week

GBP/USD is swinging between gains and losses as traders focus on the Halifax House Price Index report. The report showed that house prices increased by +2.5% year-over-year in June, compared to analyst consensus of +2.2%.

If GBP/USD settles back above the resistance at 1.3620 – 1.3640, it will move towards the 50 MA at 1.3685.

USD/CAD Tests Resistance At 1.3650 – 1.3665

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

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

USD/JPY Attempts To Settle Above 146.00 As Treasury Yields Rise

USD/JPY rallied as traders focused on rising Treasury yields. The yield of 2-year Treasuries settled near the 3.89% level, while the yield of 10-year Treasuries climbed towars 4.38%.

In case USD/JPY settles above 146.00, it will head towards the resistance at 147.50 – 148.00.

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