U.S. Dollar Rebounds From Session Lows As JOLTs Beat Analyst Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Away From Session Lows

U.S. Dollar Index is swinging between gains and losses as traders react to JOLTs Job Openings report.

The report indicated that JOLTs Job Openings increased from 6.887 million in March to 7.618 in April, compared to analyst forecast of 6.88 million. The better-than-expected report did not provide material support to the American currency as traders remained cautious amid geopolitical uncertainty.

If U.S. Dollar index manages to stay above the 50 MA at 99.11, it will move towards the nearest resistance level, which is located in the 99.70 – 99.85 range. On the support side, a move below the support at 98.85 – 99.00 will open the way to the test of the support level at 98.00 – 98.15.

EUR/USD Stays Below 1.1650 As Traders React To Inflation Data From The EU

EUR/USD is mostly flat as traders focus on inflation data from the EU. Euro Area Inflation Rate increased from 3% in April to 3.2% in May, in line with analyst expectations. Core Inflation Rate grew from 2.2% to 2.5%, compared to analyst forecast of 2.4%.

Yesterday, ECB member Isabel Schnabel suggested that it was too early to say how many rate hikes would be required to push inflation back towards the 2% target. Traders believe that ECB will raise rates at the next meeting on June 11.

In case EUR/USD settles below the 50 MA at 1.1633, it will head towards the nearest support level, which is located in the 1.1585 – 1.1600 range.

GBP/USD Gains Ground As Rebound Continues

GBP/USD is moving higher despire rising oil prices. Traders remain focused on geopolitical developments and are not ready for big moves.

A successful test of the resistance level at 1.3450 – 1.3465 will push GBP/USD towards the next resistance level at 1.3535 – 1.3550. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Pulls Back Amid Rising Demand For Commodity-Related Currencies

USD/CAD moved away from session highs as traders focused on rising precious metals markets. Gold moved towards the $4500 level, while silver climbed above the $75.50 level.

A move below the 50 MA at 1.3812 will open the way to the test of the support level at 1.3775 – 1.3790. In case USD/CAD settles below the 1.3775 level, it will head towards the next support, which is located in the 1.3700 – 1.3715 range.

USD/JPY Tests New Highs

USD/JPY is moving towards the key 160.00 level, supported by rising Treasury yields. The yield of 2-year Treasuries tested the 4.05% level, while the yield of 10-year Treasuries settled above 4.45%.

The key question is whether BoJ is ready to defend the Japanese yen if USD/JPY crosses the psychologically important 160.00 level. The interventions which were made in late April and early May achieved no results as the yen is fundamentally weak due to the difference in interest rates between U.S. and Japan.

Oil prices stay at high levels, which puts additional pressure on the Japanese economy, which is dependent on energy imports. In these circumstances, BoJ may choose to wait for higher levels before intervening.

In case USD/JPY manages to settle above 160.00, it will head towards the resistance level at 161.50 – 162.00.

If you’d like to know more about how to trade forex, please visit our educational area.