EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Lower As Initial Jobless Claims Jump To 231,000

Vladimir Zernov
Published: May 9, 2024, 16:11 GMT+00:00

Key Points:

  • EUR/USD managed to climb back above the 1.0750 level.
  • GBP/USD settled near the 1.2500 level after BoE left the interest rate unchanged.
  • USD/CAD pulled back below 1.3700 as traders focused on the rally in precious metals markets.

In this article:

U.S. Dollar

DXY 090524 4h Chart

U.S. Dollar Index is losing ground as traders react to the Initial Jobless Claims report. The report indicated that 231,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 210,000.

U.S. Dollar Index has recently settled below the 50 MA at 105.52 and is moving towards the 105.00 level. In case U.S. Dollar Index settles below 105.00, it will head towards the nearest support at 104.40 – 104.60.


EUR/USD 090524 4h Chart

EUR/USD gains ground as traders focus on U.S. job market data. Falling Treasury yields provided additional support to EUR/USD.

A successful test of the resistance at 1.0785 – 1.0800 will open the way to the test of the next resistance level at 1.0870 – 1.0885.


GBP/USD 090524 4h Chart

GBP/USD is swinging between gains and losses after BoE Interest Rate Decison. The Bank of England left the interest rate unchanged at 5.25%, but two members voted for a 25 bps rate cut. Governor Andrew Bailey noted that things were moving in a right direction, suggesting the BoE was ready to start cutting rates in 2024.

The nearest resistance level for GBP/USD is located in the 1.2530 – 1.2550 range. A move above 1.2550 will push GBP/USD towards the resistance at 1.2670 – 1.2700.


USD/CAD 090524 4h Chart

USD/CAD pulls back as traders focus on the strong rally in precious metals markets. Other commodity-related currencies are also moving higher in today’s trading session.

In case USD/CAD settles below the 1.3700 level, it will head towards the support at 1.3600 – 1.3620. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.


USD/JPY 090524 4h Chart

USD/JPY continues to move higher despite worries about potential interventions from the BoJ.

From the technical point of view, USD/JPY settled above the resistance at 154.50 – 155.00 and is slowly moving towards the next resistance level at 158.00 – 158.50.

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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