U.S. Dollar Retreats As ISM Services PMI Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back As Traders Focus On Weak Economic Data

U.S. Dollar Index is losing ground as traders react to the weaker-than-expected ISM Services PMI report. The report showed that ISM Services PMI declined from 51.6 in April to 49.9 in May, compared to analyst forecast of 52. Numbers below 50 show expansion.

In case U.S. Dollar Index manages to settle below the 98.50 level, it will move towards the next support level, which is located in the 98.00 – 98.20 range.

EUR/USD Tests Resistance At 1.1410 – 1.1425

EUR/USD tests resistance at 1.1410 – 1.1425 as traders focus on U.S. economic reports. ADP Employment Change report has also missed analyst expectations, which served as an additional bearish catalyst for the American currency.

If EUR/USD settles above the 1.1425 level, it will head towards the next resistance level at 1.1555- 1.1570.

GBP/USD Is Heading Towards The 1.3600 Level

GBP/USD failed to settle below the 50 MA at 1.3515 and is moving higher. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in the near term.

If GBP/USD moves above the 1.3590 level, it will head towards the nearest resistance at 1.3615 – 1.3640.

USD/CAD Tests New Lows

USD/CAD tests support at 1.3650 – 1.3665 amid rising demand for commodity-related currencies.

In case this test is successful, USD/CAD will head towards the next support level at 1.3575 – 1.3590.

USD/JPY Retreats As Treasury Yields Fall

USD/JPY declined below the 143.00 level as traders focused on the strong pullback in Treasury yields. The yield of 2-year Treasuries moved below the 3.87% level, while the yield of 10-year Treasuries settled near the 4.35% level.

A move below the 142.00 level will open the way to the test of the support level at 140.00 – 140.50.

For a look at all of today’s economic events, check out our economic calendar.