EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As ADP Report Misses Expectations

Key Insights

• EUR/USD settled near the 1.0850 level as Germany’s Inflation Rate fell to 2.9% in January. 
• USD/CAD tested support at 1.3380 despite the strong sell-off in the oil markets. 
• USD/JPY pulled back towards the 146.00 level as traders focused on the upcoming Fed decision. 

U.S. Dollar

U.S. Dollar Index pulls back as traders react to ADP Employment Change report, which indicated that private businesses added 107,000 jobs in January.

In case U.S. Dollar Index declines below the 103.00 level, it will head towards the next support level, which is located in the 101.75 – 102.00 range. Traders should note that U.S. Dollar Index will be extremely sensitive to the Fed decision, which will be released today.

EUR/USD

EUR/USD is mostly flat as traders focus on inflation reports from Germany. Inflation Rate declined from 3.7% in December to 2.9% in January, compared to analyst consensus of 3%.

In case EUR/USD stays above the 1.0850 level, it will move towards the nearest resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD gained some ground as traders reacted to Nationwide Housing Prices report, which showed that housing prices increased by 0.7% month-over-month in January.

GBP/USD did not manage to settle above the 1.2750 level and will likely remain range-bound until the release of the Fed decision.

USD/CAD

USD/CAD is moving lower despite the strong pullback in the oil markets.

In case USD/CAD settles below the support at 1.3380 – 1.3410, it will head towards the next support level, which is located in the 1.3300 – 1.3320 range.

USD/JPY

USD/JPY moved below the support at 147.00 – 147.50 and gained additional downside momentum.

RSI remains in the moderate territory, so USD/JPY has a decent chance to get to the test of the next support level, which is located in the 144.65 – 145.00 range.

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