U.S. Dollar Retreats Ahead Of Fed Decision: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Nov 7, 2024, 16:55 GMT+00:00

Key Points:

EUR/USD moved higher, supported by the better-than-expected Euro Area Retail Sales report.
GBP/USD gained ground as traders focused on the BoE Interest Rate Decision.
USD/JPY pulled back amid falling Treasury yields.

U.S. Dollar Is Losing Ground As Traders Prepare For Fed Decision

DXY 071124 4h Chart

U.S. Dollar Index pulled back as traders took profits after the strong rally. Today, traders also focused on the Initial Jobless Claims report. The report showed that 221,000 Americans filed for unemployment benefits in a week, in line with analyst consensus.

If U.S. Dollar Index settles below the 50 MA at 104.21, it will move towards the next support level, which is located in the 103.40 – 103.60 range.

EUR/USD Moves Higher As Euro Area Retail Sales Beat Expectations

EUR/USD 071124 4h Chart

EUR/USD gained ground as traders reacted to the better-than-expected Euro Area Retail Sales report. The report showed that Retail Sales increased by 0.5% month-over-month in September, compared to analyst consensus of +0.4%.

In case EUR/USD manages to settle above the resistance at 1.0765 – 1.0780, it will head towards the next resistance level at 1.0900 – 1.0915.

GBP/USD Gains Ground As BoE Cuts Rates

GBP/USD 071124 4h Chart

GBP/USD moved higher as traders focused on the BoE Interest Rate Decision. The Bank of England cut the interest rate from 5% to 4.75%, in line with analyst estimates. Eight out of nine BoE members voted for a cut.

Currently, GBP/USD is trying to settle above the resistance at 1.3000 – 1.3020. In case this attempt is successful, GBP/USD will head towards the next resistance level, which is located in the 1.3100 – 1.3115 range.

USD/CAD Pulls Back Amid Rising Demand For Commodity-Related Currencies

USD/CAD 071124 4h Chart

USD/CAD is moving lower as precious metals rebound after yesterday’s sell-off. Other commodity-related currencies have also managed to gain momentum in today’s trading session.

A move below the 1.3850 level will push USD/CAD towards the nearest support level at 1.3800 – 1.3815.

USD/JPY Tests Support At 153.00 – 153.50

USD/JPY 071124 4h Chart

USD/JPY pulls back as traders focus on falling Treasury yields. Fed will soon announce its Interest Rate Decision, which will have a material impact on forex market dynamics.

In case USD/JPY settles below the support at 153.00 – 153.50, it will move towards the next support level at 149.50 – 150.00.

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.