U.S. Dollar Rallies As Non Farm Payrolls Exceed Estimates
U.S. Dollar Index rallied as traders focused on the strong Non Farm Payrolls report for October. The report showed that U.S. economy added 165,000 jobs in October, compared to analyst forecast of +65,000. The previous report was revised from +29,000 to +60,000. Unemployment Rate declined from 4.2% in September to 4.1% in October.
The reports indicated that job market remained in decent shape, which means that Fed will be able to focus on fighting inflation.
The nearest resistance level for U.S. Dollar Index is located in the 102.35 – 102.50 range. In case U.S. Dollar Index climbs above the 102.50 level, it will head towards the next resistance at 103.20 – 103.35. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
EUR/USD Drops As Euro Area Retail Sales Miss Expectations
EUR/USD is losing ground as traders focus on U.S. job market data and react to the weak Euro Area Retail Sales report. The report showed that Euro Area Retail Sales decreased by -0.7% month-over-month in September, compared to analyst forecast of -0.1%.
If EUR/USD settles below the 1.1150 level, it will head towards the nearest support at 1.1110 – 1.1125. On the upside, a successful test of the resistance at 1.1175 – 1.1190 will open the way to the test of the next resistance level at 1.1250 – 1.1265.
GBP/USD Retreats As Traders React To U.S. Job Market Data
GBP/USD moved lower as traders focused on general strength of the American currency and reacted to Lloyds House Price Index report from the UK. The report indicated that house prices decreased by -0.6% month-over-month in October, compared to analyst forecast of +0.1%.
Currently, GBP/USD is trying to settle below the support level at 1.3385 – 1.3400. In case this attempt is successful, GBP/USD will move towards the next support level, which is located in the 1.3285 – 1.3300 range.
EUR/USD Price Forecast
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See all EUR/USD forecastsUSD/CAD Tests New Highs
USD/CAD rallied as traders focused on disappointing job market data from Canada. Employment declined by 4,700 in October, compared to analyst forecast of +13,600. Participation Rate remained unchanged at 64.8%, while analysts expected that it would grow to 64.9%.
USD/CAD moved above the resistance at 1.4070 – 1.4085 and is trying to settle above the 1.4100 level. If USD/CAD manages to settle above 1.4100, it will head towards the next resistance, which is located in the 1.4155 – 1.4170 range.
USD/JPY Attempts To Settle Above 158.50
USD/JPY continues its attempts to settle above the key resistance level at 158.00 – 158.50 as traders react to Non Farm Payrolls data and focus on rising Treasury yields. The yield of 2-year Treasuries climbed above the 4.52% level, while the yield of 10-year Treasuries settled above 4.85%.
A successful test of the resistance at 158.00 – 158.50 will push USD/JPY towards the next resistance level at 160.00 – 160.50. Bulls are worried that BoJ would intervene in case USD/JPY climbs above the 160.00 level. Intervention fears provide support to the yen, but fundamentals of the Japanese currency remain weak.
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