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U.S. Dollar Retreats From Session Highs As Treasury Yields Pull Back: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD moved back above the 1.1500 level as traders reacted to PMI reports.
- USD/CAD gained ground despite rising precious metals markets.
- USD/JPY made an attempt to settle above the resistance at 147.50 - 148.00.
U.S. Dollar Is Moving Lower As Traders Focus On PMI Reports
U.S. Dollar Index pulled back from session highs as traders reacted to the better-than-expected S&P Global Composite PMI report. The report indicated that Composite PMI declined from 53 in May to 52.8 in June, compared to analyst forecast of 52.5.
In case U.S. Dollar Index settles below the 50 MA at 98.51, it will head towards the support level at 98.00 – 98.20.
EUR/USD Climbed Back Above The 1.1500 Level
EUR/USD is moving higher despite the disappointing Euro Area Composite PMI report, which showed that Composite PMI remained unchanged at 50.2.
The nearest resistance level for EUR/USD is located in the 1.1555 – 1.1570 range. A move above the 1.1570 level will push EUR/USD towards the next resistance at 1.1675 – 1.1690.
GBP/USD Rebounded From Session Lows
GBP/USD gains ground as traders focus on the better-than-expected UK Manufacturing PMI report. The report indicated that Manufacturing PMI improved from 46.4 in May to 47.7 in June, compared to analyst forecast of 46.6.
A move above the 50 MA at 1.3506 will push GBP/USD towards the next resistance level at 1.3620 – 1.3640.
USD/CAD Gains Ground Amid Falling Demand For Commodity-Related Currencies
USD/CAD tested new highs despite rising precious metals markets. Other commodity-related currencies are also losing ground in today’s trading session.
If USD/CAD climbs above the 1.3800 level, it will head towards the nearest resistance, which is located in the 1.3845 – 1.3860 range.
USD/JPY Tested New Highs
USD/JPY tested resistance at 147.50 – 148.00 but lost momentum and pulled back. Treasury yields are moving lower, which is bearish for USD/JPY. The yield of 2-year Treasuries pulled back towards the 3.81% level, while the yield of 10-year Treasuries settled below 4.30%.
In case USD/JPY manages to settle above the 148.00 level, it will head towards the next resistance at 151.00 – 151.50.
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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