U.S. Dollar Rebounds As Treasury Yields Jump: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher Amid Rising Demand For Safe-Haven Assets

U.S. Dollar Index gains ground as traders focus on rising oil prices and tensions in the Middle East.

WTI oil climbed above the $97.00 level, while Brent oil moved towards $110.00 as markets ignored IEA efforts to cool prices.

The Middle East war drags on, and there is no end in sight. Rising demand for safe-haven assets provides support to the American currency.

Currently, U.S. Dollar Index is trying to settle above the resistance at 99.70 – 99.85. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance level, which is located in the 100.35 – 100.50 range.

EUR/USD Moves Lower As Germany’s PPI Misses Estimates

EUR/USD pulled back as traders focused on Producer Prices data from Germany. PPI declined by -3.3% year-over-year in February, compared to analyst forecast of -2.7%.

From the technical point of view, EUR/USD settled between the support at 1.1510 – 1.1525 and the resistance at 1.1585 – 1.1600. In case EUR/USD manages to settle below the 1.1510 level, it will head towards the next support at 1.1450 – 1.1465.

If EUR/USD climbs above the 1.1600 level, it will move towards recent highs near the 1.1670 level.

GBP/USD Retreats As Traders Focus On Fed Policy Outlook

GBP/USD pulled back as traders ignored hawkish signals of the BoE and focused on the strength of the American currency.

Yesterday, all BoE members voted to keep rates unchanged, while analysts expected that two members will vote for a cut.

GBP/USD attempts to settle below the support level at 1.3315 – 1.3330. If GBP/USD settles below the 1.3315 level, it will move towards the next support at 1.3250 – 1.3265. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

USD/CAD Is Stuck Near Key Resistance Level

USD/CAD continued its attempts to settle above the resistance at 1.3720 – 1.3735 as traders focused on economic reports from Canada and reacted to the developments in commodity markets.  Other commodity-related currencies moved lower in today’s trading session.

Canada’s Retail Sales increased by +1.1% month-over-month in January, compared to analyst forecast of +1.5%. In February, Retail Sales grew by +0.9%, while analysts expected that they would drop by -0.3%.

Precious metals markets moved lower as investors’ appetite for risk declined. Gold pulled back below the $4600 level, while silver declined below $70.00.

In case USD/JPY climbs above the 1.3735 level, it will move towards the resistance level at 1.3800 – 1.3815. On the support side, a move below 1.3700 will push USD/JPY towards the support at 1.3650 – 1.3665.

USD/JPY Rallies As Treasury Yields Rise

USD/JPY rebounds as traders focus on the rally in Treasury yields. The yield of 2-year Treasuries climbed towards the 3.90% level, while the yield of 10-year Treasuries settled above 4.35%.

Hawkish comments from the Bank of Japan did not provide sustainable support to the Japanese yen. Dynamics of Treasury yields remain the key catalyst for USD/JPY.

USD/JPY settled back above the support at 158.00 – 158.50 and is trying to settle above the 50 MA at 158.91. In case this attempt is successful, USD/JPY will move towards the resistance level, which is located in the 161.50 – 162.00 range.

At this point, there are no signs of interventions from the BoJ. It remains to be seen whether BoJ is ready to defend the yen when high energy prices put significant pressure on the Japanese economy.

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