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U.S. Dollar Moves Lower As Traders Bet On Dovish Fed: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD climbed above 1.1750 as traders prepared for Fed decision, which will be released on Wednesday.
- USD/CAD pulled back towards 1.3800 amid rising demand for commodity-related currencies.
- USD/JPY remained stuck below the resistance at 147.50 - 148.00.
U.S. Dollar Is Under Pressure
U.S. Dollar Index is losing ground as traders prepare for Fed decision, which will be released on Wednesday, and react to NY Empire State Manufacturing Index report. The report showed that NY Empire State Manufacturing Index declined from +11.90 in August to -8.70 in September, compared to analyst forecast of +5.
A successful test of the support level at 97.10 – 97.30 will open the way to the test of the next support, which is located in the 96.40 – 96.55 range.
EUR/USD Gains Ground As Traders React To Wholesale Prices Data From Germany
EUR/USD gains ground as traders focus on the Wholesale Prices report from Germany. The report showed that Wholesale Prices decreased by -0.6% month-over-month in August, compared to analyst forecast of +0.2%.
In case EUR/USD settles above the resistance at 1.1785 – 1.1800, it will head towards the next resistance level at 1.1870 – 1.1885.
GBP/USD Tests Resistance At 1.3585 – 1.3600
GBP/USD attempts to settle above the resistance at 1.3585 – 1.3600 as traders focus on the weakness of the American currency.
In case this attempt is successful, GBP/USD will move towards the next resistance level at 1.3665 – 1.3680.
USD/CAD Pulls Back As Gold Tests Historic Highs
USD/CAD is losing ground as traders focus on the strong rally in precious metals markets. Other commodity-related currencies are also moving higher in today’s trading session.
A move below the 1.3800 level will push USD/CAD towards the next support at 1.3735 – 1.3750.
USD/JPY Moves Lower As Treasury Yields Fall
USD/JPY is losing some ground as traders react to the pullback in Treasury yields. The yield of 2-year Treasuries declined below the 3.55% level, while the yield of 10-year Treasuries settled below 4.05%.
The technical picture remains unchanged as USD/JPY is stuck below the resistance level at 147.50 – 148.00.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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