U.S. Dollar Pulls Back As Traders Focus On Job Market Data
U.S. Dollar Index tested new lows as traders reacted to the Non Farm Payrolls reports for October and November, In October, the U.S. economy lost 105,000 jobs, compared to analyst forecast of +55,000. The economy added 64,000 jobs in November, exceeded the analyst consensus of +50,000. Unemployment Rate increased from 4.4% in November to 4.6% in December. The weakness of the job market put additional pressure on the American currency.
Currently, U.S. Dollar Index is trying to settle below the support at 98.00 – 98.15. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 97.35 – 97.50 range.
EUR/USD Attempts To Settle Above 1.1800
EUR/USD moved higher as traders focused on U.S. economic reports and reacted to the Euro Area ZEW Economic Sentiment Index report. The report indicated that ZEW Economic Sentiment Index increased from 25 in November to 33.7 in December, compared to analyst forecast of 26.3. The weak Manufacturing PMI report, which showed that Euro Area Manufacturing PMI decreased from 49.6 in November to 49.2 in December, did not put pressure on the European currency.
In case EUR/USD manages to settle above the resistance at 1.1805 – 1.1820, it will head towards the next resistance level at 1.1905 – 1.1920.
GBP/USD Tests New Highs As UK PMI Reports Beat Estimates
GBP/USD gains ground as traders focused on the better-than-expected PMI reports. Manufacturing PMI increased from 50.2 in November to 51.2 in December, while Services PMI grew from 51.3 to 51.2. Numbers above 50 show expansion.
IF GBP/USD stays above the 1.3400 level, it will head towards the next resistance level at 1.3475 – 1.3490.
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See all EUR/USD forecastsUSD/CAD Tests New Lows As Pullback Continues
USD/CAD tested new lows as traders focused on general weakness of the American currency.
A successful test of the support at 1.3720 – 1.3735 will open the way to the test of the next support level at 1.3670 – 1.3685.
USD/JPY Moves Lower As Treasury Yields Pull Back
USD/JPY attempts to settle below the support at 154.50 – 155.00 as traders focus on falling Treasury yields.
In case USD/JPY settles below the 154.50 level, it will head towards the next support, which is located in the 151.00 – 151.50 range.
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