U.S. Dollar Rebounds: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Feb 6, 2025, 16:45 GMT+00:00

Key Points:

EUR/USD pulled back as Euro Area Retail Sales missed analyst expectations.
GBP/USD moved lower as BoE cut the interest rate from 4.75% to 4.5%.
USD/JPY declined as traders focused on hawkish comments from BoJ member Tamura.

In this article:

EUR/USD

GBP/USD

USD/CAD

USD/JPY

U.S. Dollar Rebounds After Pullback

DXY 060225 4h Chart

U.S. Dollar Index gains ground as traders react to Initial Jobless Claims report, which showed that 219,000 Americans filed for unemployment benefits in a week. Analysts expected that Initial Jobless Claims would total 213,000.

If U.S. Dollar Index climbs above the 50 MA at 108.12, it will get to the test of the resistance level at 108.30 – 108.50.

EUR/USD Moves Lower As Traders Focus On Euro Area Retail Sales Report

EUR/USD 060225 4h Chart

EUR/USD pulled back as traders focused on the weaker-than-expected Euro Area Retail Sales report. The report showed that Retail Sales decreased by 0.2% month-over-month in December, compared to analyst consensus of -0.1%.

The nearest support level for EUR/USD is located in the 1.0335 – 1.0350 range. A move below the 1.0335 level will push EUR/USD towards the next support level at 1.0200 – 1.0215.

GBP/USD Retreats As BoE Cuts Rates

GBP/USD 060225 4h Chart

GBP/USD moved lower as traders focused on the BoE Interest Rate Decision. The Bank of England cut the rate from 4.75% to 4.5%, in line with analyst estimates.

If GBP/USD manages to settle back above the 50 MA at 1.2436, it will move towards the resistance level, which is located in the 1.2485 – 1.2500 range.

USD/CAD Is Mostly Flat As Traders React To Ivey PMI

USD/CAD 060225 4h Chart

USD/CAD is mostly flat as traders focus on Ivey PMI report from Canada. The report showed the Ivey PMI declined from 54.7 in December to 47.1 in January, compared to analyst forecast of 53.0.

In case USD/CAD settles below the recent lows at 1.4270, it will move towards the support level at 1.4180 – 1.4200.

USD/JPY Tests New Lows As Traders Bet On Hawkish BoJ

USD/JPY 060225 4h Chart

USD/JPY remains under pressure despite rising Treasury yields. BoJ board member Tamura said that the central bank should raise interest rates to at least 1%.

A successful test of the support level at 151.50 – 152.00 will push USD/JPY towards the next support level, which is located in the 148.50 – 149.00 range.

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.