U.S. Dollar Moves Lower As Builder Sentiment Falls: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Remains Under Pressure As Traders Focus On Housing Market Data

U.S. Dollar Index is losing some ground as traders react to the disappointing NAHB Housing Market Index report.

The report indicated that NAHB Housing Market Index decreased from 38 in March to 34 in April, compared to analyst forecast of 37. NAHB noted that “buyers face ongoing elevated interest rates and growing economic uncertainty”.

Today, traders also had a chance to take a look at NY Empire State Manufacturing Index report for April. The report showed that NY EMpire State Manufacturing Index increased from -0.20 to +11.00, compared to analyst consensus of -0.5.

U.S. Dollar Index continues its attempts to settle below the support level at 98.00 – 98.15. If U.S. Dollar Index manages to settle below the 98.00 level, it will move towards the next support, which is located in the 97.15 – 97.30 range.

EUR/USD Tests The 1.1800 Level

EUR/USD gained ground as traders reacted to the Euro Area Industrial Production report. The report showed that Euro Area Industrial Production increased by +0.4% month-over-month in February, compared to analyst forecast of +0.3%.

EUR/USD managed to settle above the resistance level at 1.1765 – 1.1780 and is trying to climb above the 1.1800 level. In case this attempt is successful, EUR/USD will move towards the next resistance, which is located in the 1.1835 – 1.1850 range.

GBP/USD Is Mostly Flat As Traders Focus On Middle East

GBP/USD remains stuck near resistance at 1.3570 – 1.3585 as traders focus on geopolitical developments and monitor dynamics of oil markets.

U.S. and Iran prepare for the next round of negotiations, but the Strait of Hormuz remains closed. Oil prices are swinging between gains and losses as traders are not ready for major moves amid geopolitical uncertainty.

In case GBP/USD manages to settle above the resistance at 1.3570 – 1.3585, it will move towards the next resistance level, which is located in the 1.3685 – 1.3700 range.

USD/CAD Retreats Amid Strong Demand For Commodity-Related Currencies

USD/CAD is moving lower despite the pullback in gold markets. There are no important economic reports scheduled to be released in Canada today, so traders will stay focused on general market sentiment.

Other commodity-related currencies are also gaining ground in today’s trading session as traders hope that a potential Middle East peace deal will boost global economy and raise demand for commodities.

If USD/CAD settles below the 1.3750 level, it will move towards the nearest support, which is located in the 1.3700 – 1.3715 range. A successful test of the support at 1.3700 – 1.3715 will open the way to the test of the next support at 1.3620 – 1.3635.

USD/JPY Gains Ground Amid Rising Treasury Yields

USD/JPY is trying to settle back above the 159.00 level as react to Japan’s Machinery Orders report. The report indicated that Machinery Orders increased by +13.6% month-over-month in February, compared to analyst forecast of -1.1%.

The better-than-expected did not provide support to the Japanese currency as Treasury yields moved higher. The yield of 2-year Treasuries moved above the 3.78% level, while the yield of 10-year Treasuries settled above 4.28%.

A move above the 50 MA at 159.19 will push USD/JPY towards the psychologically important 160.00 level. If USD/JPY climbs above 160.00, it will head towards the resistance, which is located in the 161.50 – 162.00 range.

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