U.S. Dollar Retreats As ISM Manufacturing PMI Drops To 48.5: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Pulled Back Below 99.00

U.S. Dollar Index is moving lower as traders react to the weaker-than-expected ISM Manufacturing PMI report. The report showed that ISM Manufacturing PMI decreased from 48.7 in April to 48.5 in May, compared to analyst forecast of 49.5. Numbers below 50 show contraction.

If U.S. Dollar Index stays below the support level at 99.00 – 99.20, it will move towards the next support at 98.00 – 98.20.

EUR/USD Tests New Highs

EUR/USD is trying to settle above the resistance level at 1.1410 – 1.1425 as traders focus on U.S. economic reports.

If EUR/USD manages to settle above the 1.1425 level, it will move towards the next resistance level, which is located in the 1.1555 – 1.1570 range. RSI is in the moderate territory, and there is enough room to gain additional momentum.

GBP/USD Gains Ground As Traders React To U.S. Economic Data

GBP/USD made an attempt to settle above the 1.3550 level as traders focused on general weakness of the American currency.

In case GBP/USD manages to settle above 1.3550, it will head towards the resistance level, which is located in the 1.3620 – 1.3640 range.

USD/CAD Pulled Back As Commodity Markets Rallied

USD/CAD tested new lows as traders focused on the strong rally in commodity markets. Other-commodity-related currencies are also moving higher in today’s trading session.

From the technical point of view, USD/CAD needs to settle below the support at 1.3650 – 1.3665 to gain additional downside momentum in the near term.

USD/JPY Tests New Lows Despite Rising Treasury Yields

USD/JPY declined below the 143.00 level as pullback continued. Rising Treasury yields did not provide support to U.S. dollar in today’s trading session.

A move below the 142.00 level will open the way to the test of the next support level at 140.00 – 140.50.

For a look at all of today’s economic events, check out our economic calendar.