EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts Overview amid U.S. Dollar Weakness
Thursday, 5 September 2024, 09:40
U.S. Dollar Movement Post-ADP Report
The U.S. Dollar (DXY) is losing traction due to a disappointing ADP report. The index showed a minor increase in ISM Services PMI from 51.4 in July to 51.5 in August. Meanwhile, the ADP Employment Change report revealed only 99,000 new jobs were added in August, far from the anticipated 145,000, raising concerns in the markets.
Forecasts of Key Currency Pairs
EUR/USD
- The EUR/USD spiked following Germany's Factory Orders report indicating a 2.9% month-over-month rise in July.
- Resistance at 1.1110 – 1.1135 will likely propel EUR/USD towards the next objective of 1.1250 – 1.1275.
GBP/USD
- GBP/USD continues its rebound, confirmed by the RSI sitting in neutral territory—indicating potential upward momentum.
- Maintaining above the 50 MA at 1.3166 positions GBP/USD to target 1.3280 – 1.3300 resistance.
USD/CAD
- Despite this backdrop, USD/CAD shows strength, supported by the rise in commodity-linked currencies.
- A breach above 1.3550 paves the way to test resistance zones of 1.3600 – 1.3620.
USD/JPY
- USD/JPY faces downward pressure amid slipping Treasury yields, with the 2-year yield settling around 3.75%.
- The pair is trending towards support at 141.80 – 142.50.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.