U.S. Dollar Retreats On Rate Cut Bets: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tested New Lows

U.S. Dollar Index pulls back as traders stay focused on Trump’s tariff policy. The yield of 2-year Treasuries declined towards the 3.90% level, which was bearish for the U.S. dollar.

If U.S. Dollar Index settles below the 106.00 level, it will head towards the support at 105.50 – 105.70.

EUR/USD Attempts To Settle Above 1.0530

EUR/USD is moving higher as traders focus on the better-than-expected Euro Area Unemployment Rate report. The report showed that Euro Area Unemployment Rate remained unchanged at 6.2% in January, compared to analyst forecast of 6.3%.

Currently, EUR/USD is trying to settle above the resistance at 1.0515 – 1.0530. In case this attempt is successful, EUR/USD will move towards the next resistance level at 1.0600 – 1.0615.

GBP/USD Gains Ground As Traders Focus On Weak Dollar

GBP/USD continues its attempts to settle above the resistance at 1.2715 – 1.2730 as traders focus on general weakness of the U.S. dollar.

If GBP/USD climbs above the 1.2730 level, it will move towards the next resistance level at 1.2810 – 1.2830.

USD/CAD Moves Higher As Traders Stay Focused On Tariffs

USD/CAD gains ground as traders worry that tariffs will put significant pressure on the Canadian economy.

A successful test of the resistance at 1.4485 – 1.4500 will push USD/CAD towards the next resistance level at 1.4680 – 1.4700.

USD/JPY Remains Under Pressure

USD/JPY pulled back as traders focused on Fed policy outlook. Traders believe that Fed may cut rates further, which is bearish for USD/JPY.

From the technical point of view, USD/JPY attempts to settle below the support at 149.00 – 149.50. If USD/JPY settles below this level, it will head towards the next support level at 146.50 – 147.00.

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