U.S. Dollar Soars As Non Farm Payrolls Beat Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs After NFP Report

U.S. Dollar Index rallied as traders reacted to the strong Non Farm Payrolls report. The report indicated that the U.S. economy added 172,000 jobs in May, compared to analyst forecast of 85,000. The previous report was revised from 115,000 to 179,000. Unemployment Rate remained unchanged at 4.3%, in line with analyst expectations.

The strong report provided significant support to the American currency as traders bet on hawkish Fed.

Currently, U.S. Dollar Index is trying to settle above the resistance at 99.70 – 99.85. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance level, which is located in the 100.50 – 100.65 range.

EUR/USD Retreats As Traders Bet On Hawkish Fed

EUR/USD is losing ground as traders focus on job market data from the U.S. The surprising strength of the U.S. job market put significant pressure on the European currency.

The nearest support level for EUR/USD is located in the 1.1500 – 1.1515 range. A successful test of this level will open the way to the test of the next support at 1.1415 – 1.1430. RSI has recently moved into the oversold territory, but there is enough room to gain additional downside momentum in case the right catalysts emerge.

GBP/USD Tests Support At 1.3335 – 1.3350

GBP/USD pulled back as traders focused on general strength of the American currency. In the UK, traders focused on the Halifax House Price Index report. The report indicated that house prices declined by -0.1% month-over-month in May, compared to analyst forecast of +0.1%.

GBP/USD attempts to settle below the support level at 1.3335 – 1.3350. In case GBP/USD declines below the 1.3335 level, it will head towards the next support at 1.3215 – 1.3230.

USD/CAD Gains Ground As Demand For Commodity-Related Currencies Falls

USD/CAD tests new highs as traders react to the strong sell-off in precious metals markets and focus on job market data from Canada.

Gold was down by -3.3% while silver pulled back by as much as 7% as traders bet that Fed will raise rates. Other commodity-related currencies have also found themselves under strong pressure in today’s trading session.

In Canada, Unemployment Rate decreased from 6.9% in April to 6.6% in May, compared to analyst forecast of 6.9%. Ivey PMI improved from 57.7 in April to 58.2 in May, while analysts expected that it would drop to 55.

From the technical point of view, USD/CAD is moving towards the resistance level at 1.3950 – 1.3965. In case USD/CAD manages to settle above the 1.3965 level, it will head towards the next resistance at 1.4035 – 1.4050.

USD/JPY Tests New Highs Amid Rising Treasury Yields

USD/JPY gains ground as traders focus on the strong rally in Treasury yields. The yield of 2-year Treasuries jumped above the 4.16% level, while the yield of 10-year Treasuries settled near 4.54%.

It should be noted that traders remain cautious due to risks of interventions from the Bank of Japan. However, it remains to be seen whether BoJ will try to defend the yen at current levels.

If USD/JPY stays above the 160.00 level, it will move towards the nearest resistrance level, which is located in the 161.50 – 162.00 range.

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