U.S. Dollar Pulls Back As Initial Jobless Claims Rise

NEW YORK (June 6) U.S. Dollar Index is losing some ground as traders react to the Initial Jobless Claims report, which indicated that 229,000 Americans filed for unemployment benefits in a week. Analysts expected that Initial Jobless Claims would rise from 219,000 to 220,000, so the report exceeded estimates.

From the technical point of view, U.S. Dollar Index remains stuck between the support at 103.75 – 103.90 and the resistance at 104.40 – 104.60.

EUR/USD continues its attempts to settle above the resistance at 1.0870 – 1.0885 as traders react to the ECB Interest Rate Decision. The European Central Bank cut the rate from 4.5% to 4.25%, in line with analyst expectations.

In case EUR/USD manages to settle above the 1.0885 level, it will head towards the next resistance at 1.0935 – 1.0950.

GBP/USD is mostly flat as traders wait for additional catalysts. Treasury yields have moved away from recent lows, but this move did not provide material support to the American currency.

A successful test of the resistance at 1.2780 – 1.2800 will open the way to the test of the next resistance level, which is located in the 1.2875 – 1.2900 range.

USD/CAD is losing some ground as traders focus on the rebound in commodity markets.

The technical picture remains unchanged as USD/CAD did not manage to settle above the 1.3700 level. RSI is in the moderate territory, so there is plenty of room to gain momentum.

USD/JPY pulled back after an unsuccessful attempt to settle above the 50 MA at 156.55. Bulls remain cautious amid worries about potential interventions from the BoJ in the 157.50 – 158.50 level.

In case USD/JPY settles below the 156.00 level, it will head towards the support, which is located near the recent lows at 154.50 – 155.00. A move below 154.50 will provide USD/JPY with an opportunity to gain additional momentum.

FXEmpire