U.S. Dollar Retreats As Traders Focus On Tariff Plans: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Feb 13, 2025, 16:45 GMT+00:00

Key Points:

EUR/USD continues its attempts to settle above the resistance at 1.0420 - 1.0435.
GBP/USD climbed above the 1.2500 level as UK GDP report exceeded analyst expectations.
USD/JPY pulled back as Treasury yields moved lower.

In this article:

EUR/USD

GBP/USD

USD/CAD

USD/JPY

U.S. Dollar Tests Weekly Lows

DXY 130225 4h Chart

U.S. Dollar Index is losing ground despite higher-than-expected PPI. According to recent reports, global reciprocal tariffs will not take immediate effect, which is bearish for the U.S. dollar.

The nearest support level for U.S. Dollar Index is located in the 106.80 – 107.00 range. In case U.S. Dollar Index declines below the 106.80 level, it will head towards the next support, which is located in the 105.50 – 105.70 range.

EUR/USD Attempts To Settle Above 1.0435

EUR/USD 130225 4h Chart

EUR/USD is moving higher despite disappointing Euro Area Industrial Production report. The report indicated that Industrial Production declined by 1.1% month-over-month in December, compared to analyst forecast of -0.6%.

Currently, EUR/USD is trying to settle above the resistance at 1.0420 – 1.0435. In case this attempt is successful, EUR/USD will head towards the next resistance, which is located in the 1.0515 – 1.0530 range.

GBP/USD Gains Ground As Traders Focus On UK GDP Report

GBP/USD 130225 4h Chart

GBP/USD gains ground as traders react to the better-than-expected GDP data from the UK. GDP increased by 0.4% month-over-month in December, compared to analyst consensus of +0.1%.

If GBP/USD stays above the 1.2500 level, it will head towards the next resistance level at 1.2600 – 1.2615.

USD/CAD Tests New Lows

USD/CAD 130225 4h Chart

USD/CAD tests new lows as traders focus on U.S. tariff policy. Other commodity-related currencies are also moving higher in today’s trading session.

A move below the support at 1.4180 – 1.4200 will open the way to the test of the next support level at 1.4060 – 1.4080.

USD/JPY Pulls Back Amid Falling Treasury Yields

USD/JPY 130225 4h Chart

USD/JPY is moving lower as traders react to the pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 4.30% level, while the yield of 10-year Treasuries settled below 4.55%.

In case USD/JPY settles below the 50 MA at 153.02, it will move towards the nearest support level at 151.50 – 152.00.

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.