U.S. Dollar Moves Higher As Traders Focus On Initial Jobless Claims: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Traders React To Initial Jobless Claims Data

U.S. Dollar Index gained ground as traders reacted to the better-than-expected Initial Jobless Claims report. The report indicated that 212,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 215,000.

It looks that the market calmed down after Supreme Court ruled that Trump’s tariffs were illegal. Current global tariffs are set at 10%, and traders wait when they will be raised to 15%.

U.S. Dollar Index is moving towards the nearest resistance level, which is located in the 98.00 – 98.15 range. If U.S. Dollar Index settles above the 98.15 level, it will head towards the next resistance at 98.90 – 99.05.

On the support side, a move below the 50 MA at 97.63 will push U.S. Dollar index towards the support at 97.10 – 97.25.

EUR/USD Pulls Back As Euro Area Economic Sentiment Misses Estimates

EUR/USD moved lower as traders reacted to the weaker-than-expected Euro Area Economic Sentiment Index report.

The report indicated that Euro Area Economic Sentiment decreased from 99.3 (revised from 99.4) in January to 98.3 in February, compared to analyst forecast of 99.8.

EUR/USD failed to settle above the resistance at 1.1835 – 1.1850 and pulled back towards the support at 1.1770 – 1.1785. In case EUR/USD manages to settle below the 1.1770 level, it will head towards the next support, which is located in the 1.1670 – 1.1685 range.

GBP/USD Tests The 1.3500 Level

GBP/USD is losing ground as traders ignore falling Treasury yields. The yield of 2-year Treasuries pulled back towards the 3.45% level, while the yield of 10-year Treasuries declined towards 4.00%.

The nearest support level for GBP/USD is located in the 1.3485 – 1.3500 range. A successful test of the support at 1.3485 – 1.3500 will push GBP/USD towards the next support level, which is located in the 1.3400 – 1.3415 range.

RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Gained Some Ground Amid Pullback In Precious Metals Markets

USD/CAD is swinging between gains and losses as traders focus on the developments in commodity markets. Silver is down by 2.4%, while oil prices are up by roughly 1%.

Other commodity-related currencies have found themselves under material pressure in today’s trading session.

The technical picture remains unchanged as USD/CAD is stuck between the support at 1.3650 – 1.3665 and the resistance at 1.3725 – 1.3740. If USD/CAD climbs above the 1.3740 level, it will gain additional upside momentum and move towards the 1.3800 level.

On the support side, a move below the support at 1.3650 – 1.3665 will push USD/CAD towards the next support, which is located in the 1.3585 – 1.3600 range.

USD/JPY Pulls Back As Traders Focus On Takata’s Comments

USD/JPY is losing some ground as traders react to Bank of Japan board member Hajime Takata speech. Takata called for a “gear shift”, suggesting that BoJ should raise rates. Back in January, Takata wanted to raise the rate from 0.75% to 1%.

Hawkish comments did not provide material support to USD/JPY. Traders also ignored falling Treasury yields. From a big picture point of view, traders bet that BoJ will hold rates unchanged due to the weakness of the Japanese economy.

Currently, USD/JPY is trying to settle back above the 156.00 level. In case this attempt is successful, USD/JPY will head towards the 157.00 level. A move above 157.00 will push USD/JPY towards the resistance at 158.00 – 158.50. It remains to be seen whether BoJ will try to defend the yen in USD/JPY approaches the 158.00 – 158.50 area.

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