U.S. Dollar Retreats As Powell Comments On Labor Market Risks: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back As Powell Talks About Monetary Policy

U.S. Dollar Index is losing ground as traders focus on Powell’s comments. Fed Chair said that Fed may stop reducing holdings on its balance sheet in the upcoming months. He also noted that there was no risk-free path for monetary policy.

The nearest support level for U.S. Dollar Index is located in the 98.85 – 99.00 range. A move below the 98.85 level will push U.S. Dollar Index towards the next support at 98.00 – 98.20.

EUR/USD Moves Higher As Traders Ignore The Weak ZEW Economic Sentiment Index Report

EUR/USD gains ground despite the weaker-than-expected Euro Area ZEW Economic Sentiment Index report. The report indicated that Economic Sentiment decreased from 26.1 in September to 22.7 in October, compared to analyst consensus of 30.2.

If EUR/USD settles above the 1.1600 level, it will head towards the 50 MA at 1.1643.

GBP/USD Tested New Lows As Traders Reacted To UK Unemployment Rate Data

GBP/USD pulled back as traders focused on the UK Unemployment Rate report. The report showed that UK Unemployment Rate increased from 4.7% in July to 4.8% in August, compared to analyst consensus of 4.7%.

A successful test of the resistance at 1.3330 – 1.3350 will open the way to the test of the 50 MA at 1.3390.

USD/CAD Retreats From Session Highs

USD/CAD moved away from session highs as traders took some profits off the table after the strong rally.

The nearest support level for USD/CAD is located in the 1.4000 – 1.4015 range. A move below the 1.4000 level will push USD/CAD towards the 50 MA at 1.3978.

USD/JPY Is Losing Ground As Treasury Yields Fall

USD/JPY is under pressure as traders focus on falling Treasury yields. The yield of 2-year Treasuries declined below the 3.50% level, while the yield of 10-year Treasuries settled below 4.05%.

A move below the support at 151.00 – 151.50 will push USD/JPY towards the next support level at 147.50 – 148.00.

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