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

Key Insights

• EUR/USD pulled back towards the 1.0800 level as U.S. Non Farm Payrolls jumped to 353,000.
• USD/CAD rebounded as oil markets tested new lows amid hopes for de-escalation in the Middle East. 
• USD/JPY rallied as traders focused on rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index rallied as traders reacted to Non Farm Payrolls report, which showed that U.S. economy added 353,000 jobs in January. Analysts expected Non Farm Payrolls of 180,000. Unemployment Rate remained unchanged at 3.7%, compared to analyst consensus of 3.8%. The better-than-expected Michigan Consumer Sentiment report provided additional support to the American currency.

In case U.S. Dollar Index stays above the 103.75 level, it will head towards the next resistance, which is located in the 104.35 – 104.55 range.

EUR/USD

EUR/USD retreats as traders focus on strong economic data from the U.S., which may force the Fed to be more hawkish.

In case EUR/USD settles below the support at 1.0810, it will head towards the next support level at 1.0730 – 1.0750.

GBP/USD

GBP/USD is losing ground as traders focus on general strength of the U.S. dollar.

A successful test of the support at 1.2650 – 1.2685 will open the way to the test of the next support level, which is located in the 1.2500 – 1.2520 range.

USD/CAD

USD/CAD rebounds as oil markets suffer a sell-off. Oil markets remain under pressure as geopolitical risk premium declines amid hopes for de-escalation in the Middle East.

In case USD/CAD manages to stay above the 1.3450 level, it will get to the test of the nearest resistance level at 1.3480 – 1.3500.

USD/JPY

USD/JPY gains ground as traders focus on the strong rebound in Treasury yields.

A move above the resistance at 147.00 – 147.50 opens the way to the test of the next resistance at 149.50 – 150.00.

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