U.S. Dollar Gains Ground As Treasury Yields Climb: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher As Treasury Yields Rise

U.S. Dollar Index gains ground despite the disappointing ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI increased from 48.0 in July to 48.7 in August, compared to analyst forecast of 49.

Currently, U.S. Dollar Index is trying to settle above the resistance at 98.00 – 98.20. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level at 99.20 – 99.40.

EUR/USD Retreats As Euro Area Inflation Rate Beats Estimates

EUR/USD pulled back as traders focused on inflation data from the EU. Euro Area Inflation Rate increased from 2% in July to 2.1% in August, compared to analyst forecast of 2%. Core Inflation Rate remained unchanged at 2.3%, while analysts expected that it would decline to 2.2%.

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

GBP/USD Is Under Strong Pressure

GBP/USD pulled back as UK government bonds found themselves under strong pressure amid worries about the health of UK finances.

If GBP/USD stays below the resistance at 1.3400 – 1.3415, it will head towards the nearest support level at 1.3315 – 1.3330. RSI has recently moved back into the moderate territory, so there is plenty of room to gain momentum in the near term.

USD/CAD Moved Higher As Demand For Commodity-Related Currencies Declined

USD/CAD gained ground despite the strong rally in gold markets as traders focused on general strength of the American currency.

A move above the 50 MA at 1.3811 will open the way to the test of the resistance at 1.3845 – 1.3860.

USD/JPY Gained Ground Amid Rising Treasury Yields

USD/JPY is moving higher as traders focus on rising Treasury yields. The yield of 2-year Treasuries climbed above the 3.65% level, providing support to the U.S. dollar.

If USD/JPY settles above 149.00, it will head towards the resistance level at 151.00 – 151.50.

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