U.S. Dollar Retreats As GDP Growth Rate Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back After Disappointing GDP Growth Rate Report

U.S. Dollar Index is losing ground as traders focus on the weaker-than-expected GDP Growth Rate report. The report indicated that GDP Growth Rate was +1.6% in the first quarter, compared to analyst forecast of +2.0%. The weaker-than-expected GDP Growth Rate served as a bearish catalyst for the American currency.

PCE Price Index increased by +0.4% month-over-month in April, compared to analyst forecast of +0.5%. Core PCE Price Index grew by +0.2%, while analysts expected that it would increase by +0.3%. The lower-than-expected PCE report put additional pressure on the American currency.

Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 215,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 211,000.

Currently, U.S. Dollar Index is trying to settle below the support level at 98.85 – 99.00. In case this attempt is successful, U.S. Dollar Index will head towards the next support, which is located in the 98.00 – 98.15 range.

EUR/USD Moves Higher As Oil Prices Fall

EUR/USD  gained ground as traders focused on the pullback in the oil markets. Brent oil declined below the $94.00 level as an Axios report indicated that U.S. and Iran have reached a deal to extend ceasefire. According to the report, President Trump needs to approve the deal.

Traders also reacted to the Euro Area Economic Sentiment report. The report showed that Euro Area Economic Sentiment improved from 93.2 in April to 93.5 in May, compared to analyst forecast of 92.8.

The nearest resistance level for EUR/USD is located in the 1.1665 – 1.1680 range. A successful test of this level will open the way to the test of the next resistance at 1.1770 – 1.1785.

GBP/USD Tests Resistance At 1.3450 – 1.3465

GBP/USD rebounded as traders’ appetite for risk increased amid pullback in the oil markets.

Currently, GBP/USD is trying to settle back above the resistance at 1.3450 – 1.3465. In case this attempt is successful, GBP/USD will move towards the next resistance level, which is located in the 1.3535 – 1.3550 range.

USD/CAD Retreats From Multi-Week Highs

USD/CAD pulled back as traders focused on news from the Middle East. Other commodity-related currencies have also gained ground in today’s trading session.

From the technical point of view, USD/CAD is moving towards the support level at 1.3775 – 1.3790. A move below this level will open the way to the test of the next support at 1.3700 – 1.3715. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

USD/JPY Is Losing Ground As Treasury Yields Fall

USD/JPY moved away from multi-week highs as traders focused on falling Treasury yields. The yield of 2-year Treasuries declined towards the 4.02% level, while the yield of 10-year Treasuries settled below 4.45%.

In case USD/JPY pulls back below the 50 MA at 159.10, it will head towards the nearest support level, which is located in the 158.00 – 158.50 range. A move below the 158.00 level will provide USD/JPY with an opportunity to gain additional downside momentum.

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