EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back Despite Strong Non Farm Payrolls Data

Key Insights

• EUR/USD settled near 1.0950 as traders reacted to EU inflation data. 
• USD/CAD pulled back as oil markets moved higher. 
• USD/JPY settled below 145.00 after the release of U.S. Non Farm Payrolls report. 

U.S. Dollar

U.S. Dollar Index pulls back as traders react to Non Farm Payrolls report, which indicated that U.S. economy added 216,000 jobs in December. Interestingly, the strong report did not provide support to the American currency as traders were still ready to bet on dovish Fed.

In case U.S. Dollar Index settles below the nearest support at 101.75 – 102.00, it will head towards the next support level at 100.50 – 100.80.

EUR/USD

EUR/USD gained some ground after the release of U.S. jobs data. In the EU, traders focused on the Euro Area Inflation Rate report, which showed that Inflation Rate increased from 2.4% in November to 2.9% in December.

In case EUR/USD settles above the 1.0950 level, it will head towards the resistance at 1.1015 – 1.1035.

GBP/USD

GBP/USD moved higher, supported by U.S. Non Farm Payrolls data. Traders expect that Fed will be dovish despite jobs data.

If GBP/USD settles above the 1.2750 level, it will head towards the resistance at 1.2820 – 1.2850.

USD/CAD

USD/CAD pulled back as oil markets continued to move higher. Other commodity-related currencies have also enjoyed some support today.

From the technical point of view, USD/CAD settled in the range between the support at 1.3275 and the resistance at 1.3410.

USD/JPY

USD/JPY is mostly flat in volatile trading. Traders focus on choppy trading in U.S. government bond markets and general dynamics of the U.S. dollar.

If USD/JPY manages to settle back above the resistance at 144.65 – 145.00, it will move towards the next resistance level, which is located in the 147.00 – 147.50 range.

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