EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Tests New Lows As Job Openings Fall

Key Insights

• U.S. Dollar Index moved towards the 101.50 level. 
• GBP/USD rallied towards the 1.2500 level. 
• USD/JPY settled below 132 as traders focused on falling Treasury yields. 

U.S. Dollar

U.S. dollar tested new lows after the release of the disappointing JOLTs Job Openings report. The report showed that the number of job openings declined to 9.93 million in February, compared to analyst consensus of 10.4 million.

Treasury yields moved lower as traders bet that Fed would be forced to cut rates in 2023. Currently, the yield of 10-year Treasuries is trying to settle below the 3.35% level. In case this attempt is successful, the yield of 10-year Treasuries will move towards the recent lows at 3.29%, which will be bearish for the American currency.

EUR/USD

EUR/USD is trying to settle above the 1.0950 level as traders focus on the pullback in Treasury yields. Inflation remains a serious problem in the Eurozone. The ECB may be more hawkish than Fed in the upcoming months, which is bullish for EUR/USD.

GBP/USD

GBP/USD rallied towards the 1.2500 level as Treasury yields declined at a time when UK government bond yields moved higher. The yield of 10-year UK government bonds has settled near 3.45%, providing additional support to GBP/USD.

USD/CAD

USD/CAD rebounds as traders take some profits off the table after the strong move. AUD/USD pulled back below the 0.6750 level as traders reacted to RBA Interest Rate Decision. RBA left the interest rate unchanged at 3.6%, in line with the analyst consensus. Meanwhile, NZD/USD continued its attempts to settle above the strong resistance at 0.6300.

USD/JPY

USD/JPY declined below the 132 level as traders focused on the dynamics of Treasury yields. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case Treasury yields move to new lows.

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