U.S. Dollar Pulls Back As Demand For Safe-Haven Assets Declines

Key Insights

• U.S. dollar is losing ground as traders focus on riskier assets. 
• Commodity-related currencies are moving higher as commodity markets rebound. 
• USD/JPY is trying to get to the test of the 136 level. 

U.S. Dollar Continues To Pull Back

U.S. dollar is losing ground despite the rebound in Treasury yields. Today, traders had a chance to take a look at the Initial Jobless Claims report. The report indicated that 230,000 Americans filed for unemployment benefits in a week, in line with the analyst consensus.

The U.S. dollar is under pressure today as traders’ risk appetite is growing, and global markets are mostly moving higher.

EUR/USD Tries To Settle Above 1.0550

EUR/USD managed to settle above the 1.0500 level and is moving towards 1.0550.

In case EUR/USD manages to settle above the resistance at 1.0550, it will gain additional upside momentum and move towards the next resistance at 1.0600. A successful test of this level will push EUR/USD towards the resistance at 1.0630.

On the support side, the nearest support level for EUR/USD is located at 1.0500. If EUR/USD declines below this level, it will head towards the next support at 1.0440. A move below 1.0440 will open the way to the test of the support at 1.0400.

GBP/USD Gains Ground As Risk Appetite Grows

GBP/USD  continues to rebound after the recent pullback and is currently trying to settle above the 1.2230 level.

There are no important economic reports scheduled to be released in the UK today, so traders will stay focused on general market sentiment.

As risk appetite grows, GBP/USD gets some support. The nearest resistance level for GBP/USD is located at 1.2245. A move above this level will open the way to the test of the resistance at 1.2275.

USD/CAD Pulls Back As Oil Markets Rebound

USD/CAD faced strong resistance near 1.3685 and moved closer to the support level at 1.3550. The rebound in the commodity markets served as the main catalyst for the move.

Other commodity-related currencies are also moving higher today. AUD/USD is trading near 0.6780, while NZD/USD settled near 0.6385.

USD/JPY Moved Back Below 136.50

USD/JPY is moving towards the 136 level as traders focus on the general dynamics of the U.S. dollar. USD/JPY made several attempts to climb above the key resistance at 137.50 in recent trading sessions, but these attempts yielded no results. In case USD/JPY manages to settle below the support at 136, it will move towards the next support level at 135.20.

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