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U.S. Dollar Gains Ground On Tariff News: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD pulled back below the 1.1250 level as the U.S. reached a trade deal with the UK.
- GBP/USD settled below the 1.3300 level after BoE cut the interest rate from 4.5% to 4.25%.
- USD/JPY moved towards the 146.00 level as traders focused on BoJ Minutes.
U.S. Dollar Index Tests Resistance At 100.20 – 100.40
U.S. Dollar Index gains ground as traders react to tariff news. President Trump announced that the U.S. reached a trade deal with the UK. The final details of the deal would be negotiated in the upcoming weeks, but markets are happy to see a trade deal after weeks full of uncertainty.
Currently, U.S. Dollar Index is trying to settle above the resistance at 100.20 – 100.40. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance level at 101.40 – 101.60.
EUR/USD Tests New Lows
EUR/USD is losing ground as traders focus on tariff news and react to Germany’s Industrial Production report. The report indicated that Industrial Production increased by +3% month-over-month in March, compared to analyst forecast of +0.8%.
In case EUR/USD stays below the support level at 1.1275 – 1.1290, it will move towards the next support at 1.1110 – 1.1130.
GBP/USD Is Volatile After BoE Decision
GBP/USD is swinging between gains and losses as traders react to BoE Interest Rate Decision. The central bank decided to cut the interest rate from 4.5% to 4.25%, in line with analyst estimates. Seven members voted for a cut, while analysts expected that the vote would be unanimous.
If GBP/USD settles below the 1.3300 level, it will move towards the next support at 1.3200 – 1.3220.
USD/CAD Attempts To Settle Above 1.3900
USD/CAD is moving higher despite the rally in the oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.
A successful test of the resistance at 1.3930 – 1.3950 will push USD/CAD towards the next resistance level at 1.4060 – 1.4080.
USD/JPY Gain Ground As Traders Focus On BoJ Minutes
USD/JPY rallied as traders reacted to BoJ Minutes, which indicated that the central bank would be cautious when considering the timing for the next rate hike.
A move above the 146.00 level will open the way to the test of the resistance at 147.50 – 148.00.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.
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