U.S. Dollar Rallies As Powell Stays Cautious On Rate Cuts: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests Weekly Highs

U.S. Dollar Index gains ground as traders stay focused on Jerome Powell’s comments, which indicate that Fed may be less dovish than expected. Traders also react to the New Home Sales report, which showed that New Home Sales increased by +20.5% month-over-month in August.

The nearest resistance level for U.S. Dollar Index is located in the 98.00 – 98.20 range. A move above this level will push U.S. Dollar Index towards the resistance at 98.85 – 99.00.

EUR/USD Retreats As Traders React To Germany’s Ifo Business Climate Report

EUR/USD pulls back as traders focus on Ifo Business Climate report from Germany. The report showed that Business Climate decreased from 88.9 in August to 87.7 in September, compared to analyst forecast of 89.3.

In case EUR/USD stays below the 1.1750 level, it will head towards the support at 1.1685 – 1.1700.

GBP/USD Is Under Pressure

GBP/USD tests new lows as traders focus on potential changes in Fed policy outlook.

From the technical point of view, GBP/USD settled below the support at 1.3485 – 1.3500 and is trying to settle below the 1.3450 level. In case this attempt is successful, it will head towards the next support level, which is located in the 1.3335 – 1.3350 range.

USD/CAD Moves Higher Amid Falling Demand For Commodity-Related Currencies

USD/CAD gains ground as traders focus on the pullback in precious metals markets. Other commodity-related currencies have also found themselves under pressure.

A move above the resistance at 1.3910 – 1.3925 will open the way to the test of the next resistance level at 1.4000 – 1.4015.

USD/JPY Gains Ground As Treasury Yields Rise

USD/JPY is moving higher as traders focus on weaker-than-expected PMI reports from Japan. Manufacturing PMI decreased from 49.7 in August to 48.4 in September, while Services PMI pulled back from 53.1 to 53.0.

If USD/JPY climbs above the 149.00 level, it will head towards the resistance at 151.00 – 151.50.

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