EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

U.S. Dollar Index made an attempt to rebound after yesterday’s sell-off but failed to gain sufficient momentum. Producer Prices declined by 0.5% month-over-month in October, which was bearish for the U.S. dollar

In case U.S. Dollar Index pulls back below the 104 level, it will head towards the support at 103.50 – 103.75.

EUR/USD is losing some ground as traders react to the Euro Area Industrial Production report, which showed that Industrial Production declined by 1.1% month-over-month in September.

To continue the rally, EUR/USD needs to settle above the 1.0900 level. A move above this level will open the way to the test of the resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD pulls back as traders react to the inflation reports from the UK. Inflation Rate declined from 6.7% in September to 4.6% in October, while Core Inflation Rate decreased from 6.1% to 5.7%.

The nearest support level for GBP/USD is located in the 1.2370 – 1.2410 range. A successful test of the support at 1.2370 will push GBP/USD towards the next support at 1.2180 – 1.2200.

USD/CAD

USD/CAD remains under pressure amid rising demand for commodity-related currencies.

If USD/CAD stays below the 1.3675 level, it will move towards the support at 1.3570 – 1.3600.

USD/JPY

USD/JPY moved back towards the 151.00 level as traders reacted to Japan’s GDP Growth Rate report, which showed that GDP Growth Rate was -0.5% in the third quarter.

The key question is whether BoJ is ready to intervene if USD/JPY settles in the 151.00 – 152.00 range.

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