U.S. Dollar Jumps As Traders Focus On Political Turmoil In France: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher As Traders Focus On Debt Problems In The EU

U.S. Dollar Index gains ground as traders focus on political problems in France. Demand for safe-haven assets increased, and traders have started to buy the American currency despite U.S. government shutdown.

In case U.S. Dollar Index manages to settle above the resistance at 98.00 – 98.20, it will move towards the next resistance, which is located in the 98.85 – 99.00 range.

EUR/USD Retreats As French Prime Minister Resigns

EUR/USD pulled back as traders reacted to resignation of French Prime Minister Sebastien Lecornu. The yields of French government bonds jumped, reflecting worries about sustainability of the country’s finances. Other European government bond yields have also moved higher.

A successful test of the support at 1.1685 – 1.1700 will open the way to the test of the next support level at 1.1585 – 1.1600.

GBP/USD Rebounds From Session Lows

GBP/USD is mostly flat as traders weigh UK budget risks and focus on the developments in France.

In case GBP/USD manages to settle above the resistance at 1.3485 – 1.3500, it will gain additional upside momentum and move towards the next resistance at 1.3585 – 1.3600.

USD/CAD Is Flat As Traders Ignore Commodity Market Rally

USD/CAD settled near the 1.3950 level despite the strong rally in commodity markets. Other commodity-related currencies gained some ground in today’s trading session.

A move below the 1.3950 level will push USD/CAD towards the nearest support at 1.3910 – 1.3925.

USD/JPY Soars As Dovish Takaichi Wins Japan Ruling Party Elections

USD/JPY rallied as traders reacted to the results of Japan ruling party elections. Takaichi, who has won the elections, has previously supported dovish monetary policy, which is bearish for the Japanese yen.

If USD/JPY stays above the 150.00 level, it will head towards the resistance level at 151.00 – 151.50.

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