The U.S. Dollar Index experienced a pullback as traders reacted to the Non Farm Payrolls report, which revealed that the U.S. economy added 216,000 jobs in December. Surprisingly, despite the positive report, the American currency did not receive significant support from traders, who remain inclined towards a dovish Federal Reserve. If the U.S. Dollar Index settles below the nearest support level at 101.75 – 102.00, it is likely to head towards the next support level at 100.50 – 100.80.
Following the release of the U.S. jobs data, EUR/USD managed to gain some ground. Meanwhile, traders in the European Union focused their attention on the Euro Area Inflation Rate report, which demonstrated an increase from 2.4% in November to 2.9% in December. If EUR/USD manages to settle above the 1.0950 level, it will likely head towards the resistance at 1.1015 – 1.1035.
GBP/USD Rises as Non Farm Payrolls Data Supports
GBP/USD experienced an upward movement, aligning with the support provided by the U.S. Non Farm Payrolls data. Traders anticipate a dovish stance from the Federal Reserve despite the positive jobs report. If GBP/USD settles above the 1.2750 level, it could potentially move towards the resistance at 1.2820 – 1.2850.
Fuelled by an increase in oil markets, USD/CAD pulled back. Additionally, other commodity-related currencies have also enjoyed some support in today’s trading. From a technical perspective, USD/CAD currently sits within a range between the support level at 1.3275 and the resistance level at 1.3410.
USD/JPY Experiences Volatility
USD/JPY is currently characterized by a mostly flat trend in a volatile trading environment. Traders are closely observing the choppy trading in U.S. government bond markets and the overall dynamics of the U.S. dollar. If USD/JPY manages to settle back above the resistance at 144.65 – 145.00, it will likely move towards the next resistance level, which is located within the range of 147.00 – 147.50.
For a comprehensive overview of all today’s economic events in the forex market, we recommend consulting our economic calendar. Stay updated on the latest news and developments that can potentially impact your trading decisions.
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