EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds As Unemployment Rate Drops To 4.2%

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the Non Farm Payrolls report, which indicated that the economy added 142,000 jobs in August. Analysts expected Non Farm Payrolls of 160,000, so the report missed estimates. Unemployment Rate declined from 4.3% in July to 4.2% in August, in line with analyst consensus. Treasury yields moved lower, but this move did not put pressure on the American currency.

In case U.S. Dollar Index settles above the 50 MA at 101.33, it will head towards the nearest resistance level, which is located in the 102.00 – 102.20 range.

EUR/USD

EUR/USD pulls back as traders focus on the economic data from the EU. The third estimate of the second-quarter Euro Area GDP Growth Rate showed that GDP Growth Rate declined from 0.3% to 0.2%. Germany’s Industrial Production decreased by 2.4% month-over-month in July, compared to analyst consensus of -0.3%.

If EUR/USD settles below the 1.1050 level, it will head towards the nearest support level at 1.0980 – 1.1000.

GBP/USD

GBP/USD retreats as traders react to the U.S. job market data. Today, traders also had a chance to take a look at the Halifax House Price Index report for August. The report showed that house prices increased by 0.3% month-over-month, compared to analyst consensus of +0.2%.

A move below the support at 1.3120 – 1.3140 will push GBP/USD towards the next support level at 1.3025 – 1.3045.

USD/CAD

USD/CAD gained upside momentum amid broad pullback in commodity markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

In case USD/CAD stays above the 1.3550 level, it will get to the test of the nearest resistance at 1.3600 – 1.3620.

USD/JPY

USD/JPY remains under pressure as Treasury yields continue to move lower. RSI is in the oversold territory, but there is some room to gain additional downside momentum in the near term.

A successful test of the support at 141.80 – 142.50 will push USD/JPY towards the next support level at 138.50 – 139.00.

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