U.S. Dollar Pulls Back As JOLTs Job Openings Drop To 6.882 Million: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats As Traders React To Job Market Data

U.S. Dollar Index pulls back as traders focus on the disappointing JOLTs Job Openings report. The report indicated that JOLTs Job Openings decreased from 7.24 million (revised from 6.946 million) in January to 6.882 million in February, compared to analyst consensus of 6.92 million.

Today, traders also had a chance to take a look at the CB Consumer Confidence report for March. The report showed that Consumer Confidence increased from 91 (revised from 91.2) in February to 91.8 in March, while analysts expected that it would drop to 88.

Chicago PMI pulled back from 57.7 in February to 52.8 in March, compared to analyst forecast of 55.

Traders have mostly focused on JOLTs data and worried that the slowdown of the job market has already begun in February. Rising energy prices could have put additional pressure on the job market in March.

U.S. Dollar Index has recently made an attempt to settle above the resistance level at 100.35 – 100.50 but lost momentum and pulled back. If U.S. Dollar Index declines below the psychologically important 100.00 level, it will move towards the next support at 99.70 – 99.85.

EUR/USD Gains Ground As Euro Area Inflation Rate Misses Estimates

EUR/USD  gains ground as traders focus on inflation data from the EU. Euro Area Inflation Rate increased from 1.9% in February to 2.5% in March, compared to analyst forecast of 2.6%.

Core Inflation Rate declined from 2.4% to 2.3%, while analysts expected that it would remain unchanged at 2.4%.

High oil and natural gas prices pushed inflation towards higher levels, although analysts were even more aggressive in their forecasts.

Currently, EUR/USD is trying to settle above the resistance level at 1.1510 – 1.1525. In case this attempt is successful, EUR/USD will get to the test of the 50 MA at 1.1545. A move above the 50 MA will push EUR/USD towards the resistance level at 1.1585 – 1.1600.

GBP/USD Pulls Back From Session Highs

GBP/USD pulled back from session highs as traders reacted to U.S. economic reports and focused on developments in the energy markets.

Interestingly, Brent oil’s pullback did not provide any support to the British pound.

From the technical point of view, GBP/USD continues its attempts to settle below the support level at 1.3215 – 1.3230. In case GBP/USD stays below the 1.3215 level, it will head towards the next support, which is located in the 1.3115 – 1.3130 range.

USD/CAD Tests New Highs As Rally Continues

USD/CAD continues to move higher as traders focus on Canada’s GDP report. The report indicated that GDP increased by +0.1% month-over-month in January, compared to analyst forecast of 0%. In February, GDP grew by +0.2%, while analysts expected that it would increase by +0.1%.

The better-than-expected GDP report did not provide support to the Canadian dollar. Traders have also ignored the strong rally in precious metals markets. Other commodity-related currencies were mixed in today’s trading session.

If USD/CAD settles above the 1.3950 level, it will move towards the resistance level at 1.3980 – 1.3995. A move above the 1.3995 level will open the way to the test of the resistance level at 1.4050 – 1.4065.

USD/JPY Moves Lower Amid Falling Treasury Yields

USD/JPY is losing ground as traders react to the strong pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 3.75% level, while the yield of 10-year Treasuries moved below 4.30%.

Treasury yields are moving lower as traders reduce bets on hawkish Fed after recent dovish comments from Fed Chair Powell.

The nearest support level for USD/JPY is located in the 158.00 – 158.50 range. A successful test of this support level will open the way to the test of the next support at 154.50 – 155.00.

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