U.S. Dollar Struggles as Major Currencies Gain Ground – EUR/USD Eyes 1.17, GBP and Yen Strengthen

Key Highlights:

EUR/USD approaches the key 1.1700 mark amid broad USD weakness.
GBP/USD climbs to weekly highs, driven by bullish sentiment.
USD/CAD dips as gold and silver rallies support the Canadian dollar.
USD/JPY slips following a drop in U.S. Treasury yields.

Dollar Weakens at the Start of the Week

The U.S. Dollar Index (DXY) remains under pressure as investors focus on escalating trade tensions and brace for new tariffs set to begin in August. At the time of writing, DXY is testing the lower boundary of the 98.00–98.20 support zone. A successful breakdown below this level may open the door for further losses, potentially targeting the 96.70–96.90 area.

EUR/USD Nears 1.1700 as Bulls Eye Breakout

EUR/USD has climbed to test the 1.1675–1.1690 resistance zone, supported by weakness in the U.S. dollar. With RSI still in neutral territory, there’s room for more upside momentum. A decisive daily close above 1.1690 could propel the pair toward the next key resistance at 1.1815–1.1830.

GBP/USD Hits Weekly Highs Despite Quiet Economic Calendar

GBP/USD is building bullish momentum, trading near the 1.3500–1.3520 resistance area. With no major economic releases from the UK or U.S. today, sentiment-driven flows dominate the market. A break above current levels could send GBP/USD toward 1.3630–1.3650 in the short term.

USD/CAD Slips as Metals Rally Boosts Commodity Currencies

USD/CAD retreats as investors rotate into commodity-linked currencies amid a rally in precious metals. The pair is headed toward support at 1.3650–1.3665. A daily close below this zone could trigger a deeper pullback toward 1.3550–1.3565.

USD/JPY Dips as Falling Yields Weigh on Dollar

USD/JPY is under pressure as U.S. Treasury yields move lower, with the 2-year yield dropping below 3.85% and the 10-year yield slipping to 4.35%. The pair is now flirting with the 147.50 support zone. A break below could expose further downside toward 143.50–144.00.

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Yasher Rizwan