U.S. Dollar Retreats From Session Highs After Weak Jobs Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Mostly Flat As Traders Focus On Non Farm Payrolls Data

U.S. Dollar Index is swinging between gains and losses as traders stay focused on geopolitics and react to the Non Farm Payrolls report.

Oil prices soared as President Trump demanded unconditional surrender from Iran. At this point, Iranian leaders do not want to capitulate, so traders prepare for weeks of battles.

The Non Farm Payrolls report showed that the economy lost -92,000 jobs in February, compared to analyst forecast of +59,000. Unemployment Rate increased from 4.3% in January to 4.4% in February, while analysts expected that it would remain unchanged at 4.3%.

The surprising job market data put pressure on the American currency. Earlier, U.S. dollar was moving higher as demand for safe-haven assets increased amid war in the Middle East. The weak Non Farm Payrolls report raised worries about the situation in the U.S. economy, which was bearish for the U.S. dollar.

Currently, U.S. Dollar Index is trying to settle back below the support at 98.90 – 99.05. In case U.S. Dollar Index manages to settle below the 98.90 level, it will head towards the 50 MA at 98.40. A move below the 50 MA will push U.S. Dollar Index towards the support level at 98.00 – 98.15.

EUR/USD Attempts To Rebound Despite Oil Rally

EUR/USD attempts to rebound from recent lows as traders focus on U.S. economic data. U.S. Retail Sales decreased by -0.2% month-over-month in January, compared to analyst forecast of -0.3%.

It remains to be seen whether EUR/USD could gain sustainable upside momentum as Brent oil has already moved above the $90.00 level. High oil and natural gas prices will put significant pressure on the weak European economy.

The nearest resistance level for EUR/USD is located in the 1.1585 – 1.1600 range. In case EUR/USD manages to settle above the 1.1600 level, it will head towards the next resistance at 1.1675 – 1.1690.

GBP/USD Is Moving Towards The 1.3400 Level

GBP/USD gained ground as traders reacted to the weak job market report from the U.S.

In the UK, traders focused on the Halifax House Price Index report for February. The report showed that house prices increased by +0.3% month-over-month, in line with analyst estimates.

GBP/USD is moving towards the resistance level at 1.3400 – 1.3415. If GBP/USD climbs above the 1.3415 level, it will head towards the next resistance at 1.3500 – 1.3515.

On the support side, GBP/USD needs to settle below the 1.3315 level to have a chance to gain additional downside momentum in the near term.

USD/CAD Moves Lower Amid Rally In Commodity Markets

USD/CAD pulls back as traders focus on the major rally in the oil markets. Precious metals markets have also moved higher, providing additional support to commodity-related currencies.

RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

USD/JPY Remains Stuck Near Resistance At 158.00 – 158.50

USD/JPY continued its attempts to settle above the resistance at 158.00 – 158.50 as traders focused on dynamics of oil prices.

The weak Non Farm Payrolls report provided some support to the Japanese yen, but traders may soon turn their attention back to oil markets. The Japanese economy is vulnerable due to the country’s dependence on energy imports, which is bearish for the yen.

A successful test of the resistance level at 158.00 – 158.50 will push USD/JPY towards the next resistance level, which is located in the 161.50 – 162.00 range.

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