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

U.S. Dollar Moves Higher As Inflation Expectations Rise

U.S. Dollar Index gains ground as traders react to the weak Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment decreased from 52.2 in April to 50.8 in May, compared to analyst forecast of 53.4. The report also showed that year-ahead inflation expectations increased from 6.5% to 7.2%.

The nearest resistance level for U.S. Dollar Index is located in the 101.40 – 101.60 range. If U.S. Dollar Index settles above the 101.60 level, it will head towards the next resistance at 103.30 – 103.50.

EUR/USD Is Heading Towards The Support At 1.1110 – 1.1130

EUR/USD pulled back as traders focused on U.S. economic data and reacted to tariff news. Donald Trump said that he would send tariff rates  to other countries over the next two or three weeks, as it was hard to negotiate deals with more than 100 trading partners at once.

A successful test of the support level at 1.1110 – 1.1130 will push EUR/USD towards the next support level at 1.0900 – 1.0920.

GBP/USD Is Losing Ground Ahead Of The Weekend

GBP/USD is losing ground as traders focus on general strength of the American currency.

If GBP/USD settles below the 1.3250 level, it will get to the test of the nearest support level at 1.3200 – 1.3220.

USD/CAD Attempts To Settle Above 1.4000

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

In case USD/CAD climbs above the 1.4000 level, it will move towards the next resistance level at 1.4060 – 1.4080.

USD/JPY Rebounds As Japan’s GDP Declines

USD/JPY gained some ground as traders reacted to Japan’s GDP Growth Rate report. The report indicated that GDP Growth Rate was -0.2% in the first quarter, compared to analyst forecast of -0.1%.

A move above the 146.00 level will open the way to the test of the resistance level at 147.50 – 148.00.

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