EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground As Treasury Yields Rebound

By:Vladimir Zernov

Published: Jun 2, 2023, 16:34 UTC•2min read

Treasury yields moved higher as traders reacted to the better-than-expected Non Farm Payrolls report.

Mentioned in Article

EUR/USD

$1.05999

+0.07%

GBP/USD

$1.21853

-0.23%

USD/CAD

$1.34859

+0.22%

USD/JPY

¥148.967

+0.09%

Key Insights

EUR/USD pulled back towards 1.0715 as traders focused on rising Treasury yields.
USD/CAD moved away from session lows and made an attempt to settle above 1.3450.
USD/JPY rebounded towards the psychologically important 140 level.

U.S. Dollar

DXY 020623 Daily Chart

U.S. Dollar Index rebounded as traders reacted to the job market data. Non Farm Payrolls report showed that the economy added 339,000 jobs in May. Unemployment Rate increased from 3.4% to 3.7%. Treasury yields moved higher, which was bullish for the American currency.

A successful test of the resistance at 104.10 will push the U.S. Dollar Index towards the next resistance level at 104.45. If the U.S. Dollar Index settles above this level, it will head towards the next resistance at 104.70.

R1:104.10 – R2:104.45 – R3:104.70

S1:103.75 – S2:103.50 – S3:103.20

EUR/USD

EUR/USD 020623 Daily Chart

EUR/USD pulled back as traders focused on rising Treasury yields. Industrial Production increased by 0.8% in France, but this report had minimal impact on EUR/USD dynamics.

In case EUR/USD settles below the support at 1.0700, it will head towards the support level at 1.0670. A move below this level will push EUR/USD towards the 1.0635 level.

R1:1.0730 – R2:1.0750 – R3:1.0775

S1:1.0700 – S2:1.0670 – S3:1.0635

GBP/USD

GBP/USD 020623 Daily Chart

GBP/USD pulled back after an unsuccessful attempt to settle above 1.2500 as traders took profits after the recent rebound.

If GBP/USD settles below 1.2470, it will head towards the support level at 1.2440. A successful test of this level will push GBP/USD towards the next support at 1.2400.

R1:1.2485 – R2:1.2510 – R3:1.2550

S1:1.2470 – S2:1.2440 – S3:1.2400

USD/CAD

USD/CAD 020623 Daily Chart

USD/CAD rebounded from session lows. The continuation of the oil market rebound was bullish for Canadian dollar, but traders also focused on the general strength of the U.S. Dollar.

The nearest resistance level for USD/CAD is located at 1.3485. If USD/CAD climbs above this level, it will move towards the next resistance at 1.3530.

R1:1.3485 – R2:1.3530 – R3:1.3565

S1:1.3440 – S2:1.3410 – S3:1.3380

USD/JPY

USD/JPY 020623 Daily Chart

USD/JPY gained ground as Treasury yields rebounded after the recent pullback.

If USD/JPY settles above 139.60, it will head towards the next resistance at 140.50. A move above this level will push USD/JPY towards the 141.60 level.

R1:139.60 – R2:140.50 – R3:141.60

S1:138.70 – S2:137.50 – S3:136.50

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