U.S. Dollar Retreats As Trump Threatens New Tariffs On China: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests Support At 98.85 – 99.00

U.S. Dollar Index is losing ground as U.S. President Trump said that he could increase tariffs on goods from China, which has recently introduced export controls on rare-earths.

Currently, U.S. Dollar Index is trying to settle below the support at 98.85 – 99.00. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 98.00 – 98.20 range.

EUR/USD Moves Higher As Traders Focus On U.S. – China Trade War

EUR/USD gained ground as traders focused on the potential new round of the trade war between U.S. and China.

In case EUR/USD settles above the resistance at 1.1585 – 1.1600, it will head towards the next resistance level at 1.1685 – 1.1700.

GBP/USD Attempts To Settle Above 1.3350

GBP/USD is moving higher as traders react to Trump’s comments on China. Higher tariffs on China may put additional pressure on the U.S. economy and force the Fed to cut rates despite inflation risks.

A successful test of the resistance at 1.3330 – 1.3350 will open the way to the test of the 50 MA at 1.3425.

USD/CAD Is Stuck Near The 1.4000 Level

USD/CAD is swinging between gains and losses as traders focus on labor market reports from Canada. Unemployment Rate remained unchanged at 7.1% in September, while analysts expected that it would increase to 7.2%. Other commodity-related currencies have found themselves under strong pressure in today’s trading session.

If USD/CAD climbs above the resistance at 1.4000 – 1.4015, it will head towards the next resistance level at 1.4080 – 1.4095.

USD/JPY Retreats As Treasury Yields Fall

USD/JPY is losing ground as traders focus on the strong pullback in Treasury yields. The yield of 2-year Treasuries declined below the 4.55% level, while the yield of 10-year Treasuries settled below 4.10%.

A move below the support at 151.00 – 151.50 will open the way to the test of the 50 MA at 149.92.

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