U.S. Dollar Retreats Despite Strong Non Farm Payrolls Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Losing Ground As Traders React To Job Market Data

U.S. Dollar Index is losing ground as traders react to the strong Non Farm Payrolls report. The report showed that the economy added 177,000 jobs in April, compared to analyst forecast of 130,000.

In case U.S. Dollar Index settles below the 50 MA at 99.51, it will head towards the nearest support level, which is located in the 98.80 – 99.00 range.

EUR/USD Moves Higher As Euro Area Inflation Rate Exceeds Expectations

EUR/USD moved higher as traders focused on inflation data from the EU. Inflation Rate remained unchanged at 2.2% in April, while analysts expected that it would drop to 2.1%. Core Inflation Rate increased from 2.4% to 2.7%, compared to analyst forecast of 2.5%.

If EUR/USD climbs above the 50 MA at 1.1362 it will head towards the resistance level at 1.1450 – 1.1470.

GBP/USD Remains Stuck Near The 1.3300 Level

GBP/USD made an attempt to settle above the 1.3300 level but lost momentum and pulled back.

A move below the 1.3250 level will push GBP/USD towards the nearest support at 1.3200 – 1.3220.

USD/CAD Tests New Lows

USD/CAD is losing ground amid rising demand for commodity-related currencies. The pullbacks in gold and oil markets did not put pressure on the Canadian dollar today.

If USD/CAD stays below the 1.3800 level, it will move towards the support level at 1.3700 – 1.3720.

USD/JPY Tested Support At 144.00

USD/JPY is losing ground despite the strong rally in Treasury yields, which was triggered by the better-than-expected Non Farm Payrolls report. The yield of 2-year Treasuries climbed above the 3.80% level, while the yield of 10-year Treasuries settled above 4.30%.

A successful test of the support at 143.50 – 144.00 will open the way to the test of the next support level, which is located in the 141.50 – 142.00 range.

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