Advertisement
Advertisement

EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Initial Jobless Claims Fall Below 200,000

By:
Vladimir Zernov
Published: Jan 18, 2024, 17:41 UTC

The U.S. job market stays strong, which is bullish for the American currency.

EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

Key Insights

  • EUR/USD is trying to settle below the 1.0850 level as traders focus on rising Treasury yields. 
  • USD/CAD continues its attempts to climb above the 1.3500 level. 
  • USD/JPY is mostly flat as traders take some profits after the recent rally. 

U.S. Dollar

DXY
DXY 180124 4h Chart

U.S. Dollar Index is moving higher as traders react to the Initial Jobless Claims report, which indicated that 187,000 Americans filed for unemployment benefits in a week. Analysts expected Initial Jobless Claims of 207,000. The report showed that the job market remained in a good shape, which is bullish for the American currency.

A move above the resistance at 103.55 – 103.75 will open the way to the test of the next resistance level at 104.35 – 104.55.

EUR/USD

EUR/USD
EUR/USD 180124 4h Chart

EUR/USD remains under pressure as traders bet on a less dovish Fed. Treasury yields test new highs, providing additional support to U.S. dollar.

If EUR/USD settles below the 1.0850 level, it will move towards the support at 1.0810 – 1.0830.

GBP/USD

GBP/USD
GBP/USD 180124 4h Chart

GBP/USD is mostly flat as traders wait for additional catalysts. Interestingly, rising Treasury yields did not put pressure on GBP/USD in today’s trading session.

If GBP/USD climbs back above the 50 MA at 1.2711, it will gain additional upside momentum and move towards the resistance at 1.2820 – 1.2850.

USD/CAD

USD/CAD
USD/CAD 180124 4h Chart

USD/CAD continues its attempts to settle above the 1.3500 level despite the rebound in the oil markets.

If USD/CAD settles above 1.3500, it will move towards the resistance at 1.3590 – 1.3620.

USD/JPY

USD/JPY
USD/JPY 180124 4h Chart

USD/JPY is mostly flat while traders stay focused on the recent changes in Fed policy outlook.

A move above the 148.50 level will open the way to the test of the resistance at 149.50 – 150.00.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

Did you find this article useful?

Advertisement