U.S. Dollar Pulled Back From Session Highs

Key Insights

• U.S. dollar moved higher after strong U.S. jobs data. 
• GBP/USD settled near the 1.2200 level. 
• USD/CAD made an attempt to settle above 1.3500.

U.S. Dollar Gains Ground As Non Farm Payrolls Report Exceeds Expectations

U.S. Dollar Index rebounded from multi-month lows as Non Farm Payrolls report exceeded analyst expectations.

Traders were ready to bet on the rebound of the American currency as the strong job market boosts chances for an aggressive rate hikes from the Fed.

The U.S. Dollar Index faced resistance near 105.60 and pulled back towards the 105.10 level. It remains to be seen whether the pullback was caused by profit-taking after the strong rally or some traders believe that the Fed will be more cautious despite latest job data.

EUR/USD Pulled Back Below 1.0500

EUR/USD  found itself under pressure after the release of the Non Farm Payrolls report and moved below the 1.0500 level.

Currently, EUR/USD is trading near 1.0470. The nearest significant support level for EUR/USD is located at 1.0440. If EUR/USD settles below this level, it will move towards the next support at 1.0400.

GBP/USD Declined As Traders Focused On The U.S. Jobs Data

GBP/USD made an attempt to settle below the 1.2150 level after the release of the U.S. jobs data but lost momentum and moved back above the 1.2200 level.

The general dynamics of the U.S. dollar will serve as the key catalyst for GBP/USD in today’s trading session. If Treasury yields continue to move higher as traders bet on a more hawkish Fed, GBP/USD will settle below 1.2200.

USD/CAD Tried To Settle Above 1.3500

Today, traders also had a chance to take a look at the job market data from Canada. Canada’s Unemployment Rate declined from 5.2% in October to 5.1% in November, while Participation Rate decreased from 64.9% to 64.8%.

Currently, USD/CAD is trying to settle above the 1.3450 level. In case this attempt is successful, USD/CAD will get to the test of the next resistance at 1.3470. A move above this level will open the way to the test of the 1.3500 level.

On the support side, a move below 1.3450 will push USD/CAD towards the support at 1.3420. If USD/CAD declines below this level, it will move towards the next support at 1.3400. A successful test of the support at 1.3400 will open the way to the test of the support at 1.3360.

Other commodity-related currencies are also moving lower today. AUD/USD declined towards 0.6750, while NZD/USD is trading near 0.6350.

USD/JPY Rebounded From Multi-Month Lows

Today, USD/JPY tested new lows at 133.62. The Non Farm Payrolls report provided significant support to USD/JPY, and it moved towards the 135.50 level. Most likely, USD/JPY will stay focused on the general dynamics of the U.S. dollar in the upcoming trading sessions.

For a look at all of today’s economic events, check out our economic calendar.