U.S. Dollar Rebounds After JOLTs Job Openings Report

Key Insights

• Euro Area Inflation Rate declined from 10.6% to 10%.
• USD/CAD pulled back as WTI oil managed to climb above the $80 level. 
• USD/JPY is moving towards the psychologically important 140 level. 

U.S. Dollar Rebounds From Session Lows

U.S. Dollar Index moved away from session lows after JOLTs Job Openings report indicated that job offers declined from 10.69 million in September to 10.33 million in October, mostly in line with the analyst consensus.

Traders also had a chance to take a look at the Pending Home Sales report, which indicated that Pending Home Sales declined by 4.6% month-over-month in October. High interest rates continue to put pressure on the housing market. This report served as an additional positive catalyst for the U.S. dollar.

Earlier, ADP Employment Change report indicated that private businesses added 127,000 jobs in November, compared to analyst consensus of 200,000. The second estimate of the third-quarter GDP Growth Rate report showed that GDP increased by 2.9% quarter-over-quarter, compared to analyst consensus of 2.7%.

EUR/USD Faced Strong Resistance Near 1.0400

EUR/USD made another attempt to settle above the 1.0400 level but lost momentum and pulled back towards 1.0350.

Today, traders focused on inflation data from the EU. Euro Area Inflation Rate declined from 10.6% in October to 10% in November, compared to analyst consensus of 10.4%. It remains to be seen whether one data point will change ECB’s plans.

The nearest support level for EUR/USD is located at 1.0320. In case EUR/USD declines below this level, it will head towards the next support at 1.0280. A successful test of the support at 1.0280 will push EUR/USD towards the support at the 20 EMA at 1.0250.

On the upside, the nearest resistance level for EUR/USD is located at 1.0360. If EUR/USD climbs above this level, it will head towards the resistance at 1.0400. This resistance level has already been tested several times and proved its strength. A move above 1.0400 will open the way to the test of the resistance at 1.0440.

GBP/USD Tests Support At 1.1950

GBP/USD continues its attempts to settle below the support level at 1.1950. In case GBP/USD manages to settle below this level, it will have a good chance to gain additional downside momentum.

The recent comments of BoE chief economist Huw Pill, who said that inflation could fall rapidly in the second half of 2023, may put some additional pressure on GBP/USD.

USD/CAD Pulls Back After Yesterday’s Rally

USD/CAD settled in the 1.3500 – 1.3550 range as WTI oil moved above the $80 level.

Other commodity-related currencies are mostly flat today. NZD/USD is trading near the 0.6200 level, while AUD/USD has settled near 0.6700.

USD/JPY Is Heading Towards The Key 140 Level

USD/JPY gained upside momentum and managed to get above the 139.50 level. Today, USD/JPY traders focused on the Housing Starts report from Japan. The report indicated that Housing Starts declined by 1.8% year-over-year, compared to analyst consensus of -1.3%. The disappointing report served as a bearish catalyst for the yen.

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