EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground After Non Farm Payrolls Report

Key Insights

• U.S. Dollar Index rallied as traders reacted to the Non Farm Payrolls report. 
• EUR/USD, rattled by rebounding U.S. Treasury yields and a marginally improved Euro Area Manufacturing PMI, dipped below the 1.0835 support.
• GBP/USD is walking on a knife’s edge, battling to stay above the 1.2590 – 1.2620 support as the U.S. dollar asserts its strength.

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the Non Farm Payrolls report, which indicated that U.S. economy added 187,000 jobs in August. Unemployment Rate increased from 3.5% in July to 3.8% in August as Participation Rate grew from 62.6% to 62.8%.

From the technical point of view, U.S. Dollar Index settled above the 103.65 level and is moving towards the resistance at 104.40 – 104.70.

EUR/USD

EUR/USD pulls back as traders focus on the rebound in Treasury yields. Today, traders also had a chance to take a look at the final reading of the Euro Area Manufacturing PMI report, which showed that Euro Area Manufacturing PMI increased from 42.7 in July to 43.5 in August.

EUR/USD managed to settle below the previous support at 1.0835 and is moving towards the next support level, which is located in the 1.0670 – 1.0700 range.

GBP/USD

GBP/USD is currently trying to settle below the support at 1.2590 – 1.2620 as traders focus on the general strength of the U.S. dollar.

If GBP/USD settles below the 1.2590 level, it will head towards the next support at 1.2470 – 1.2500.

USD/CAD

USD/CAD rebounds despite the strong rally in the oil markets. Traders focus on rising Treasury yields and the general strength of the American currency.

In case USD/CAD settles above the 1.3600 level, it will head towards the nearest resistance, which is located in the 1.3650 – 1.3670 range.

USD/JPY

USD/JPY moved away from recent lows due to the rebound in Treasury yields. USD/JPY will remain extremely sensitive to the dynamics of Treasury yields due to the ultra-dovish policy of the BoJ.

The support at 144.65 – 145.00 has already been tested several times and proved its strength. A move above the 50 MA will open the way to the test of the recent highs above the 147.00 level.

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