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

U.S. Dollar Index is losing ground as traders focus on the pullback in Treasury yields. The weaker-than-expected NAHB Housing Market Index report and rising Initial Jobless Claims put additional pressure on the American currency today.

From the technical point of view, U.S. Dollar Index failed to settle above the 104.50 level and is sliding towards the nearest support at 103.50 – 103.75.

EUR/USD gains ground as traders react to the economic data from the U.S. From a big picture point of view, traders bet that Fed would be more dovish than previously expected.

If EUR/USD manages to climb above the 1.0900 level, it will head towards the next resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD is also moving higher as traders focus on the general weakness of the U.S. dollar.

GBP/USD found support in the 1.2370 – 1.2410 range and is moving towards the recent highs near the 1.2500 level.

USD/CAD

USD/CAD rebounds as oil prices dive amid concerns about the strength of demand in China.

If USD/CAD settles above the 50 MA at 1.3758, it will move towards the next resistance level, which is located in the 1.3800 – 1.3830 range.

USD/JPY

USD/JPY pulls back as traders react to the better-than-expected economic reports from Japan. The country’s exports increased by 1.6% in October, compared to analyst consensus of 1.2%.

If USD/JPY settles below the psychologically important 150.00 level, it may quickly get to the test of the nearest support at 148.00 – 149.00.

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