EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As CB Consumer Confidence Improves

Key Insights

• EUR/USD pulled back as Germany’s Producer Prices fell in November. 
• GBP/USD moved lower as traders reacted to UK inflation data. 
• USD/JPY stabilized below the 144.00 level. 

U.S. Dollar

U.S. Dollar Index gains some ground as traders react to economic reports. CB Consumer Confidence improved from 101 in November to 110.7 in December, while Existing Home Slaes increased by 0.8% month-over-month in November.

From the technical point of view, U.S. Dollar Index needs to settle above the 102.65 level to gain additional upside momentum. If U.S. Dollar Index climbs above 102.65, it will head towards the next resistance at 103.50 – 103.75.

EUR/USD

EUR/USD pulls back as traders react to Germany’s Producer Prices report, which showed that PPI declined by 0.5% month-over-month in November.

The nearest support level for EUR/USD is located in the 1.0925 – 1.0950 range. A move below 1.0925 will open the way to the test of the support at 1.0765 – 1.0790.

GBP/USD

GBP/USD is losing ground as traders react to UK inflation data. Inflation Rate declined from 4.6% to 3.9%, while Core Inflation Rate decreased from 5.6% to 5.1%.

A successful test of the support at 1.2650 – 1.2685 will push GBP/USD towards the next support level at 1.2370 – 1.2410.

USD/CAD

USD/CAD continues to move lower as oil markets test weekly highs. Other commodity-related currencies are also moving higher in today’s trading session.

Currently, USD/CAD is slowly moving towards the support at 1.3275 – 1.3300. RSI has recently climbed back into the moderate territory, so there is enough room to gain additional momentum.

USD/JPY

USD/JPY is mostly flat as traders wait for additional catalysts after BoJ Interest Rate Decision, which was released yesterday.

In case USD/JPY climbs above the 50 MA at 143.85, it will head towards the next resistance at 144.65 – 145.00.

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