U.S. Dollar Gains Ground As Unemployment Rate Drops To 4.4%: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs

U.S. Dollar Index gained ground as traders focused on job market data. Non Farm Payrolls report showed that the economy added 50,000 jobs in December, compared to analyst forecast of 60,000. Unemployment Rate decreased from 4.5% in November (revised from 4.6%) to 4.4%, compared to analyst consensus of 4.5%. The better-than-expected Unemployment Rate report provided material support to the American currency.

In case U.S. Dollar Index stays above the resistance at 98.85 – 99.00, it will move towards the next resistance at 100.25 – 100.40.

EUR/USD Pulls Back As Traders Focus On U.S. Job Market Data

EUR/USD remains under pressure despite the better-than-expected Retail Sales report from the EU. The report indicated that Retail Sales increased by +0.2% month-over-month in November, compared to analyst forecast of +0.1%.

A successful test of the support at 1.1615 – 1.1630 will open the way to the test of the next support level at 1.1500 – 1.1515.

GBP/USD Tested The 1.3400 Level

GBP/USD moved lower as traders focused on the economic data from the U.S.  GBP/USD made an attempt to settle below the 1.3400 level but lost momentum and rebounded towards 1.3420.

A move below 1.3400 will push GBP/USD towards the nearest support level at 1.3360 – 1.3375.

USD/CAD Tests Resistance At 1.3890 – 1.3905

USD/CAD attempts to settle above the resistance level at 1.3890 – 1.3905 as traders react to Canada’s Unemployment Rate report. The report indicated that Unemployment Rate increased from 6.5% in November to 6.8% in December, compared to analyst forecast of 6.6%.

In case USD/CAD settles above the 1.3905 level, it will head towards the next resistance at 1.3980 – 1.3995.

USD/JPY Gains Ground As Treasury Yields Rise

USD/JPY is moving higher as traders react to rising Treasury yields. The yield of 2-year Treasuries climbed above the 3.50% level, while the yield of 10-year Treasuries moved above 4.15%.

Currently, USD/JPY is trying to settle above the resistance at 158.00 – 158.50. In case this attempt is successful, USD/JPY will move towards the next resistance level at 161.50 – 162.00.

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