U.S. Dollar Retreats Amid Labor Market Concerns: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Lows As Pullback Continues

U.S. Dollar Index pulls back as traders focus on ADP Research data, which showed that private businesses cut 11,250 jobs per week in the four weeks ended October 25. Traders bet that weakness of the job market will force the Fed to cut rates.

In case U.S. Dollar Index stays below the 99.50 level, it will head towards the support at 98.85 – 99.00.

EUR/USD Tests Resistance At 1.1585 – 1.1600

EUR/USD gains ground as traders react to the better-than-expected Euro Area ZEW Economic Sentiment Index report. The report showed that Economic Sentiment improved from 22.7 in October to 25 in November, compared to analyst forecast of 23.5.

A successful test of the resistance at 1.1585 – 1.1600 will open the way to the test of the next resistance level at 1.1655 – 1.1670.

GBP/USD Remains Stuck Near The 1.3160 Level

GBP/USD is mostly flat as traders focus on the Unemployment Rate report from the UK. The report showed that Unemployment Rate increased from 4.8% in August to 5% in September, compared to analyst consensus of 4.9%.

If GBP/USD stays above the 1.3160 level, it will move towards the next resistance at 1.3250 – 1.3265.

USD/CAD Moves Towards The Support At 1.3975 – 1.3990

USD/CAD is losing ground as pullback continues. Other commodity-related currencies are mixed in today’s trading session.

A move below the support at 1.3975 – 1.3990 will open the way to the test of the next support level at 1.3885 – 1.3900.

USD/JPY Retreats Despite Rising Treasury Yields

USD/JPY failed to settle above the resistance level at 154.50 – 155.00 despite rising Treasury yields.

If USD/JPY settles above the 155.00 level, it will head towards the resistance at 158.00 – 158.50. On the support side, a move below the 153.00 level will push USD/JPY towards the support at 151.00 – 151.50.

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