U.S. Dollar Pulls Back As Initial Jobless Claims Exceed Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Away From Recent Highs

U.S. Dollar Index pulled back as traders reacted to the Initial Jobless Claims report. The report indicated that 227,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 222,000.

Traders also had a chance to take a look at the Existing Home Sales report for January. The report showed that Existing Home Sales decreased by -8.4% month-over-month, compared to analyst forecast of -3.4%.

The National Association of Realtors commented: “The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of the decrease and determine if this month’s numbers are an aberration.”

The median existing home price was $396,800, up by +0.9% on a year-over-year basis.

Treasury yields moved lower as traders reacted to jobs data. Falling Treasury yields put additional pressure on the American currency.

Currently, U.S. Dollar Index is trying to settle below the 96.75 level. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 96.00 – 96.15 range.

EUR/USD Stays Range-Bound

EUR/USD is swinging between gains and losses as traders focus on economic reports from the U.S.

The technical picture remains unchanged as EUR/USD is stuck between the support at 1.1835 – 1.1850 and the resistance at 1.1900 – 1.1915.

In case EUR/USD manages to settle below the 1.1835 level, it will gain additional downside momentum and move towards the next support at 1.1770 – 1.1785.

On the upside, a move above the 1.1915 level will push EUR/USD towards the 1.2000 level. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

GBP/USD Attempts To Settle Above 1.3650

GBP/USD is mostly flat as traders focus on GDP report from the UK. The report showed that GDP Growth Rate was +0.1% in the fourth-quarter, compared to analyst forecast of +0.2%.

Traders also focused on the UK Industrial Production report, which showed that Industrial Production decreased by -0.9% month-over-month in December, Manufacturing Production declined by -0.5%, compared to analyst consensus of 0%.

In case GBP/USD manages to settle above the 1.3650 level, it will head towards the nearest resistance level, which is located in the 1.3710 – 1.3725 range.

USD/CAD Gains Ground As Commodity Markets Pull Back

USD/CAD continues its attempts to settle above the resistance at 1.3575 – 1.3590 as traders focus on the pullback in commodity markets. Gold failed to settle above the $5100 level, while WTI oil pulled back below the $64.00 level. Other commodity-related currencies are also moving lower in today’s trading session.

In case USD/CAD settles above the 1.3590 level, it will head towards the 50 MA at 1.3625. A move above the 50 MA will open the way to the test of the resistance level at 1.3650 – 1.3665.

USD/JPY Remains Under Pressure

USD/JPY is losing ground as traders focus on falling Treasury yields. The yield of 2-year Treasuries declined towards the 3.45% level, while the yield of 10-year Treasuries pulled back towards 4.12%.

It should be noted that USD/JPY declined from 157.50 towards 152.50 in just four trading sessions. This is a major move for the forex market, and some traders have already found themselves under strong pressure amid volatility.

If USD/JPY settles below the 152.50 level, it will head towards the nearest support level at 151.50 – 152.00. A successful test of this level will open the way to the test of the psychologically important 150.00 level.

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