U.S. Dollar Retreats Amid Shutdown Worries: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

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Published: Sep 29, 2025, 16:52 GMT+00:00

Key Points:

EUR/USD made an attempt to settle above the 1.1750 level as Euro Area Economic Sentiment report exceeded analyst estimates.
USD/CAD pulled back amid rising demand for commodity-related currencies.
USD/JPY declined towards the 148.50 level as Treasury yields pulled back.

NASDAQ Index, SP500, Dow Jones Forecasts

U.S. Dollar Pulls Back As Traders Focus On Shutdown Risks

DXY 290925 4h Chart

U.S. Dollar Index is losing ground as traders focus on government shutdown risks. Today, traders also had a chance to take a look at the Pending Home Sales report for August. The report indicated that Pending Home Sales increased by +4.0% month-over-month, compared to analyst forecast of +0.3%.

In case U.S. Dollar Index pulls back below the 50 MA at 97.92, it will head towards the nearest support level, which is located in the 97.10 – 97.30 range.

EUR/USD Gains Ground As Euro Area Economic Sentiment Beats Estimates

EUR/USD 290925 4h Chart

EUR/USD moved higher as traders focused on the Euro Area Economic Sentiment report. The report showed that Economic Sentiment improved from 95.3 in August to 95.5 in September, compared to analyst consensus of 95.2.

If EUR/USD settles above the 50 MA at 1.1758, it will head towards the resistance level at 1.1785 – 1.1800.

GBP/USD Tests The 1.3450 Level

GBP/USD 290925 4h Chart

GBP/USD moved higher as traders reacted to U.S. economic reports and focused on general weakness of the American currency.

The nearest resistance level for GBP/USD is located in the 1.3485 – 1.3500 range. In case GBP/USD manages to settle above the 1.3500 level, it will move towards the next resistance at 1.3485 – 1.3500.

USD/CAD Is Losing Ground As Gold Tests Historic Highs

USD/CAD 290925 4h Chart

USD/CAD pulls back as gold tests historic highs. Other commodity-related currences are also moving higher in today’s trading session.

A move below the 1.3910 level will push USD/CAD towards the nearest support level at 1.3845 – 1.3860.

USD/JPY Tests The 148.50 Level Amid Falling Treasury Yields

USD/JPY 290925 4h Chart

USD/JPY is losing ground as traders focus on falling Treasury yields. The yield of 2-year Treasuries pulled back towards the 3.62% level, while the yield of 10-year Treasuries settled below 4.15%.

A successful test of the support at 147.50 – 148.00 will push USD/JPY towards the 146.00 level.

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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