U.S. Dollar Continues To Rebound: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs Amid Rising Demand For Safe-Haven Assets

U.S. Dollar Index gains ground as traders react to economic reports and focus on geopolitical tensions. JOLTs Job Openings increased from 7.71 million in July to 8.04 million in August, compared to analyst consensus of 7.65 million. The stronger-than-expected job market data provided support to the American currency. ISM Manufacturing PMI remained unchanged at 47.2 in September, while S&P Global Manufacturing PMI declined from 47.9 to 47.3. The reports did not have a major impact on forex markets as traders focused on the job market report.

In case U.S. Dollar Index moves above the 101.50 level, it will head towards the next resistance at 102.00 – 102.20.

EUR/USD Pulls Back As Inflation Rate Drops To 1.8%

EUR/USD pulled back as traders focused on inflation data from the EU. Inflation Rate declined from 2.2% in August to 1.8% in September, compared to analyst forecast of 1.9%. Core Inflation Rate decreased from 2.8% to 2.7%. Inflation Rate is moving lower, which is bearish for the euro.

If EUR/USD declines below the 1.1050 level, it will head towards the nearest support, which is located in the 1.1000 – 1.1015 range.

GBP/USD Tests New Lows

GBP/USD is moving lower as traders focus on general strength of the U.S. dollar. The UK Manufacturing PMI report met analyst expectations and did not have a material impact on market dynamics.

A successful test of the support at 1.3245 – 1.3265 will open the way to the test of the next support level at 1.3120 – 1.3140.

USD/CAD Is Moving Lower As Oil Markets Rally

USD/CAD pulls back as traders focus on the rally in the oil markets, which was triggered by reports indicating Iran was ready to attack Israel.

A move below the support at 1.3480 – 1.3500 will open the way to the test of the next support level at 1.3350 – 1.3380.

USD/JPY Stays Flat Despite The Pullback In Treasury Yields

USD/JPY is mostly flat despite the pullback in Treasury yields, which was driven by rising demand for safe-haven assets.

The technical picture remains unchanged as USD/JPY did not manage to get out of the downward channel.

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