U.S. Dollar Rallies As Composite PMI Beats Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs As Traders Focus On PMI Reports

U.S. Dollar Index gains ground as traders react to the better-than-expected Composite PMI report. The report indicated that Composite PMI increased from 55.1 in July to 55.4 in August, compared to analyst forecast of 53.

Currently, U.S. Dollar Index is trying to settle above the 98.60 level. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance at 99.20 – 99.40.

EUR/USD Is Losing Ground As Traders Reduce Bets On Dovish Fed

EUR/USD pulled back as traders focused on the weaker-than-expected Euro Area Services PMI report. The report showed that Services PMI decreased from 51.0 in July to 50.7 in August, compared to analyst forecast of 50.8.

The nearest support level for EUR/USD is located in the 1.1575 – 1.1590 range. A move below the 1.1575 level will push EUR/USD towards the next support at 1.1450 – 1.1465.

GBP/USD Tests Support At 1.3400 – 1.3420

GBP/USD is under pressure as traders focus on the weak UK Manufacturing PMI report. The report showed that UK Manufacturing PMI declined from 48.0 in July to 47.3 in August. Numbers below 50 show contraction.

A successful test of the support at 1.3400 – 1.3415 will open the way to the test of the next support level at 1.3300 – 1.3315.

USD/CAD Attempts To Settle Above 1.3900

USD/CAD tests new highs as traders focus on general strength of the American currency. Other commodity-related currencies are also losing ground in today’s trading session.

From the technical point of view, USD/CAD is heading towards the nearest resistance level at 1.3925 – 1.3940.

USD/JPY Moves Higher As Treasury Yields Rise

USD/JPY moved above the 148.00 level as traders focused on rising Treasury yields. Bond traders reduced their bets on rate cuts after the release of strong U.S. PMI reports.

If USD/JPY stays above 148.00, it will head towards the resistance level at 151.00 – 151.50.

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