U.S. Dollar Climbs Towards Yearly Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Initial Jobless Claims Drop to 201,000

U.S. Dollar Index gains ground as traders react to the strong Initial Jobless Claims report. The report showed that 201,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 218,000.

In case U.S. Dollar Index climbs above the resistance at 109.40 – 109.60, it will move towards the next resistance level, which is located in the 111.10 – 111.30 range.

EUR/USD Is Under Pressure As Germany’s Factory Orders Fall By 5.4%

EUR/USD is losing ground as traders focus on the weak Factory Orders report from Germany. The report showed that Factory Orders declined by 5.4% month-over-month in November, compared to analyst consensus of 0%. Worries about the health of the European economy serve as the key bearish catalyst for EUR/USD.

GBP/USD Tests New Lows

GBP/USD tested new lows as traders focused on the weakness of the UK economy. The yield of 10-year UK government bonds tested multi-year highs and reached levels that were last seen back in 2008.

If GBP/USD settles below the support at 1.2355 – 1.2370, it will move towards the next support level at 1.2200 – 1.2215.

USD/CAD Attempts To Climb Back Above 1.4400

USD/CAD is moving higher amid pullback in the oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the 1.4400 level will push USD/CAD towards the recent highs near the 1.4460 level.

USD/JPY Tests Resistance At 158.50 – 159.00

USD/JPY is trying to settle above the resistance at 158.50 – 159.00 as traders bet that Treasury yields will continue to rise in the near term.

A successful test of this level will push USD/JPY towards the next resistance at 161.50 – 162.00.

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