EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rallies As Non Farm Payrolls Exceed Expectations

U.S. Dollar

U.S. Dollar Index rallied as traders reacted to the better-than-expected Non Farm Payrolls report. The report indicated that Non Farm Payrolls increased from 165,000 (revised from 175,000) in April to 272,000 in May, compared to analyst consensus of 185,000. Unemployment Rate increased from 3.9% to 4% as Participation Rate declined from 62.7% in April to 62.5% in May. The yield of 2-year Treasuries jumped towards 4.85%, while the yield of 10-year Treasuries moved above the 4.40% level.

In case U.S. Dollar Index settles above the 105.00 level, it will head towards the next resistance at 105.75 – 106.00.

EUR/USD

EUR/USD is under pressure as traders focus on U.S. job market reports. In the EU, the third estimate of the Euro Area GDP Growth Rate showed that GDP increased by 0.3% in the first quarter.

The nearest support level for EUR/USD is located in the 1.0785 – 1.0800 range. A move below the 1.0785 level will push EUR/USD towards the next support level at 1.0710 – 1.0725.

GBP/USD

GBP/USD is losing ground as traders focus on general strength of the American currency.

A successful test of the support at 1.2670 – 1.2700 will open the way to the test of the next support level, which is located in the 1.2580 – 1.2600 range.

USD/CAD

USD/CAD tests new highs amid a strong sell-off in precious metals markets. Other commodity-related currencies are also moving lower in today’s trading session.

If USD/CAD manages to settle above the 1.3750 level, it will head towards the resistance at 1.3785 – 1.3800.

USD/JPY

USD/JPY gains ground as traders focus on rising Treasury yields. From the technical point of view, USD/JPY is trying to settle above the 50 MA at 156.45.

In case this attempt is successful, USD/JPY will move towards the resistance at 158.00 – 158.50. If Treasury yields continue to move higher, potential interventions from the BoJ will be the only significant risk for USD/JPY bulls.

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