EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Dives As Unemployment Rate Rises To 4.3%

U.S. Dollar

U.S. Dollar Index is under strong pressure as traders react to the disappointing Non Farm Payrolls report. The report indicated that U.S. economy added 114,000 jobs in July, compared to analyst consensus of 175,000. Unemployment Rate increased from 4.1% in June to 4.3% in July, compared to analyst forecast of 4.1%. Traders bet that Fed will start cutting rates aggressively due to the slowdown of the U.S. economy.

Currently, U.S. Dollar Index is trying to settle below the support at 103.50 – 103.75. In case this attempt is successful, U.S. Dollar Index will move towards the next support level at 102.00 – 102.20.

EUR/USD

EUR/USD rallied as traders reacted to U.S. economic data. The yield of 2-year Treasuries dived below the 3.95% level, providing additional support to EUR/USD.

A move above the resistance at 1.0900 – 1.0915 will push EUR/USD towards the next resistance level at 1.0980 – 1.1000.

GBP/USD

GBP/USD rebounded from recent lows, supported by falling Treasury yields and weak U.S. job market data.

In case GBP/USD manages to settle back above the 1.2800 level, it will head towards the resistance at 1.2880 – 1.2900.

USD/CAD

USD/CAD pulls back as traders focus on general weakness of the American currency. The strong sell-off in the oil markets did not put significant pressure on the Canadian dollar.

If USD/CAD settles back below the 1.3850 level, it will move towards the support at 1.3785 – 1.3800.

USD/JPY

USD/JPY tests new lows as the sell-off continues. The recent rate hike from the BoJ continues to provide support to the Japanese yen. It looks that Japanese investors have started to bring money back home, which is bullish for the yen.

From the technical point of view, USD/JPY is oversold, so it should get some support in the 146.00 – 146.50 range.

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