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U.S. Dollar Gains Ground As Traders React To Initial Jobless Claims Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD pulled back as Euro Area Economic Sentiment missed analyst estimates.
- GBP/USD moved lower as UK house prices declined by -0.6% in December.
- USD/JPY made an attempt to settle above the 157.00 level as Japan's Consumer Confidence declined.
U.S. Dollar Index Tests Resistance At 98.85 – 99.00
U.S. Dollar Index moves higher as traders react to the better-than-expected Initial Jobless Claims report. The report indicated that 208,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 210,000.
Currently, U.S. Dollar Index is trying to settle above the resistance at 98.85 – 99.00. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 100.25 – 100.40 range.
EUR/USD Tests New Lows
EUR/USD pulls back as traders react to the Euro Area Economic Sentiment report. The report showed that Euro Area Economic Sentiment decreased from 97.1 in November to 96.7 in December, compared to analyst forecast of 97.
In case EUR/USD manages to settle below the 1.1650 level, it will head towards the nearest support at 1.1615 – 1.1630.
GBP/USD Moves Lower Amid Worries About UK Housing Market
GBP/USD declined as trades reacted to Halifax House Prices Index report, which showed that house prices declined by -0.6% month-over-month in December. Falling house prices highlight the weakness of the UK economy.
If GBP/USD pulls back below the 1.3415 level, it will head towards the support at 1.3360 – 1.3375.
USD/CAD Stays Strong As Demand For Commodity-Related Currencies Declines
USD/CAD continues to move higher as traders react to the pullback in silver markets. Other commodity-related currencies are also moving lower in today’s trading session.
A successful test of the resistance at 1.3890 – 1.3905 will open the way to the test of the next resistance level at 1.3980 – 1.3995.
USD/JPY Tests The 157.00 Level
USD/JPY continues its attempts to settle above the 157.00 level as traders focus on the weak Consumer Confidence report from Japan. Consumer Confidence decreased from 37.5 in November to 37.2 in December, compared to analyst forecast of 37.8.
A move above the 157.00 level will push USD/JPY towards the resistance level at 158.00 – 158.50.
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About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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