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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat After ADP Employment Change Report

By:
Vladimir Zernov

The weaker-than-expected report triggered a pullback in Treasury yields but did not put pressure on the American currency.

EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat After ADP Employment Change Report

In this article:

Key Insights

  • EUR/USD is losing some ground as Euro Area Retail Sales missed analyst expectations. 
  • USD/CAD is mostly flat despite the strong sell-off in the oil markets. 
  • USD/JPY remains stuck near the 147.00 level as traders ignore falling Treasury yields. 

U.S. Dollar

DXY
DXY 061223 4h Chart

U.S. Dollar Index settled near the 104.00 level as traders reacted to ADP Employment Change report, which indicated that private businesses added 103,000 jobs in November. Analysts expected ADP Employment Change of 130,000, so the report missed analyst expectations.

In case U.S. Dollar Index stays above the 104.00 level, it will move towards the nearest resistance at 104.50 – 104.75.

EUR/USD

EUR/USD
EUR/USD 061223 4h Chart

EUR/USD continued its attempts to settle below the support at 1.0765 – 1.0790 as traders focused on the Euro Area Retail Sales report, which showed that Retail Sales increased by 0.1% month-over-month in October.

A successful test of the support at 1.0765 – 1.0790 will push EUR/USD towards the next support level at 1.0660 – 1.0680.

GBP/USD

GBP/USD
GBP/USD 061223 4h Chart

GBP/USD is mostly flat as traders react to the Construction PMI report, which indicated that Construction PMI decreased from 45.6 in October to 45.5 in November. Numbers below 50 show contraction.

From the technical point of view, GBP/USD is trying to stabilize after the recent pullback. RSI remains in the moderate territory, so there is enough room to gain additional momentum.

USD/CAD

USD/CAD
USD/CAD 061223 4h Chart

USD/CAD is swinging between gains and losses as traders ignore the strong sell-off in the oil markets.

If USD/CAD climbs above 1.3600, it will gain additional upside momentum and move towards the next resistance at 1.3675 – 1.3700.

USD/JPY

USD/JPY
USD/JPY 061223 4h Chart

USD/JPY is mostly flat as traders wait for additional catalysts. Treasury yields tested new lows today, but this move did not provide support to the Japanese yen.

USD/JPY must settle below the 147.00 level to have a chance to gain downside momentum.

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.

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