U.S. Dollar Moves Lower As Initial Jobless Claims Rise: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Jan 23, 2025, 17:21 GMT+00:00

Key Points:

EUR/USD gains ground as traders focus on the Euro Area Consumer Confidence data.
GBP/USD attempts to settle above the resistance at 1.2355 - 1.2370.
USD/JPY is losing ground ahead of BoJ decision.

U.S. Dollar Pulls Back As Initial Jobless Claims Exceed Expectations

DXY 230125 4h Chart

U.S. Dollar Index is losing ground as traders react to the Initial Jobless Claims report. The report showed that 223,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 220,000.

In case U.S. Dollar Index settles back below the 108.00 level, it will move towards the next resistance, which is located in the 106.80 – 107.00 range.

EUR/USD Tests Resistance At 1.0420 – 1.0435

EUR/USD 230125 4h Chart

EUR/USD gains some ground as traders focus on the Euro Area Consumer Confidence data. The report showed that Consumer Confidence improved from -14.5 in December to -14.2 in January, in line with analyst estimates.

A successful test of the resistance at 1.0420 – 1.0435 will push EUR/USD towards the next resistance level, which is located in the 1.0515 – 1.0530 range.

GBP/USD Attempts To Settle Above 1.2350

GBP/USD 230125 4h Chart

GBP/USD tests resistance at 1.2355 – 1.2370 as traders focus on general weakness of the U.S. dollar.

A move above the 1.2370 level will open the way to the test of the next resistance level, which is located in the 1.2485 – 1.2500 range.

USD/CAD Retreats Despite Pullback In The Oil Markets

USD/CAD 230125 4h Chart

USD/CAD pulled back after an unsuccessful attempt to settle above the 1.4400 level. The pullback in the oil markets did not put pressure on the Canadian dollar today.

The nearest support level for USD/CAD is located in the 1.4330 – 1.4350 range. If USD/CAD settles below the 1.4330 level, it will move towards the next support level at 1.4100 – 1.4120.

USD/JPY Is Moving Lower Ahead Of BoJ Decision

USD/JPY 230125 4h Chart

USD/JPY pulls back despite rising Treasury yields. Traders prepare for BoJ decision, which will be released tomorrow. Analysts expect that BoJ will raise the interest rate from 0.25% to 0.5%.

If USD/JPY moves below the 155.00 level, it will head towards the nearest support at 153.50 – 154.00.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.