U.S. Dollar Moves Higher After JOLTs Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As JOLTs Job Openings Beat Analyst Forecasts

U.S. Dollar Index gained ground as traders reacted to the better-than-expected JOLTs Job Openings and ISM Services PMI reports. The report showed that U.S. economy remained in good shape, so traders increased their bets on hawkish Fed.

Currently, U.S. Dollar Index is trying to settle above the resistance at 108.30 – 108.50. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level at 109.40 – 109.60.

EUR/USD Pulls Back After Euro Area Inflation Data

EUR/USD pulled back as traders focused on inflation data from the EU. Inflation Rate increased from 2.2% in November to 2.4% in December, while Core Inflation Rate remained unchanged at 2.7%. Both reports met analyst expectations.

The nearest support level for EUR/USD is located in the 1.0330 – 1.0345 range. In case EUR/USD declines below this level, it will move towards the next support level at 1.0235 – 1.0250.

GBP/USD Attempts To Settle Below 1.2500

GBP/USD tests support at 1.2475 – 1.2490 as traders focus on the Halifax House Price Index report for December. The report indicated that house prices declined by 0.2% month-over-month, compared to analyst consensus of +0.8%.

If GBP/USD moves below the 1.2475 level, it will head towards the next support level at 1.2355 – 1.2370.

USD/CAD Remains Stuck Near 1.4350

USD/CAD is mostly flat despite rising commodity markets. Other commodity-related currencies are also flat in today’s trading session.

In case USD/CAD settles back above the 1.4350 level, it will get to the test of the 50 MA at 1.4383.

USD/JPY Gains Ground As Treasury Yields Rise

USD/JPY is moving higher, supported by rising Treasury yields. The yield of 2-year Treasuries moved above the 4.30% level, while the yield of 10-year Treasuries settled near the 4.70% level.

From the technical point of view, USD/JPY needs to climb above the resistance at 158.50 – 159.00 to gain additional upside momentum in the near term.

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