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EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Retreats As Initial Jobless Claims Exceed Estimates

By:
Vladimir Zernov
Published: Jun 8, 2023, 16:29 UTC

Traders bet on a more dovish Fed after the release of U.S. jobs data.

EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Retreats As Initial Jobless Claims Exceed Estimates

In this article:

Key Insights

  • EUR/USD rebounded towards the 1.0780 level despite weak GDP data. 
  • USD/CAD moved away from session lows amid a strong sell-off in the oil markets. 
  • USD/JPY declined towards the 139 level as Treasury yields pulled back. 

U.S. Dollar

DXY
DXY 080623 Daily Chart

U.S. Dollar Index pulled back as traders reacted to the Initial Jobless Claims report, which indicated that 261,000 Americans filed for unemployment benefits in a week.

In case the U.S. Dollar Index settles below 103.20, it will move towards the support at 103.00. A successful test of this support level will push the U.S. Dollar Index towards the next support at 102.70.

R1:103.50 – R2:103.75 – R3:104.10

S1:103.20 – S2:103.00 – S3:102.70

EUR/USD

EUR/USD
EUR/USD 080623 Daily Chart

EUR/USD rallied as traders focused on the pullback in Treasury yields. Euro Area GDP Growth Rate report showed that GDP declined by 0.1% in the first quarter, compared to analyst consensus of +0.0%. The Euro Area is in a recession, but EUR/USD traders are mostly focused on the dynamics of Treasury yields.

A move above the 1.0780 level will push EUR/USD towards the next resistance at 1.0800. If EUR/USD settles above this level, it will head towards the resistance at 1.0830.

R1:1.0780 – R2:1.0800 – R3:1.0830

S1:1.0750 – S2:1.0730 – S3:1.0700

GBP/USD

GBP/USD
GBP/USD 080623 Daily Chart

GBP/USD also managed to gain strong upside momentum as traders bet on a more dovish Fed after the disappointing Initial Jobless Claims report.

A successful test of the resistance at 1.2540 will push GBP/USD towards the 1.2580 level. If GBP/USD climbs above this level, it will head towards the resistance at 1.2600.

R1:1.2540 – R2:1.2580 – R3:1.2600

S1:1.2510 – S2:1.2485 – S3:1.2470

USD/CAD

USD/CAD
USD/CAD 080623 Daily Chart

USD/CAD rebounds as oil prices retreat amid reports that U.S. and Iran may be close to a deal on oil exports.

If USD/CAD settles back above 1.3380, it will move towards the resistance at 1.3410. A successful test of this level will push USD/CAD towards the 1.3440 level.

R1:1.3380 – R2:1.3410 – R3:1.3440

S1:1.3335 – S2:1.3300 – S3:1.3275

USD/JPY

USD/JPY
USD/JPY 080623 Daily Chart

USD/JPY pulled back as Treasury yields moved lower after the release of U.S. jobs data.

In case USD/JPY declines below the support at 138.70, it will head towards the next support level at 137.50. A move below this level will open the way to the test of the support at 136.50.

R1:139.60 – R2:140.50 – R3:141.60

S1:138.70 – S2:137.50 – S3:136.50

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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