**U.S. Dollar Retreats as Traders Eye JOLTS Data – EUR/USD, GBP/USD, USD/CAD, USD/JPY Analysis**
*Original article by Vladimir Zernov, FXEmpire*
The U.S. dollar experienced a notable pullback in recent trading sessions as market participants closely monitored the latest Job Openings and Labor Turnover Survey (JOLTS) data released by the U.S. Bureau of Labor Statistics. The data revealed a decline in job openings, which traders interpreted as a potential signal of a cooling U.S. labor market. This development triggered a broad-based movement across major currency pairs, including EUR/USD, GBP/USD, USD/CAD, and USD/JPY.
The recent shift in sentiment stems partly from expectations regarding future Federal Reserve policy. A weaker-than-expected labor market may reduce the likelihood of further interest rate hikes, prompting investors to reallocate capital into currencies offering higher yields or relative economic strength.
Let’s examine how these dynamics are impacting the major Forex pairs.
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## EUR/USD: Euro Regains Momentum on Softer Dollar
The Euro rallied against the U.S. dollar as risk appetite returned and treasury yields softened. Investor speculation around the Fed’s next policy move has been deeply affected by economic indicators like JOLTS, which showed only 8.1 million job openings compared to 8.3 million in the previous report and below market forecasts.
**Key Drivers:**
– A decline in job openings in the United States intensified expectations of a slowdown in the labor market.
– European Central Bank (ECB) rate expectations are stabilizing, offering some support to the euro.
– Market participants have become more cautious and now expect the Fed to hold rates steady in upcoming meetings, weakening the dollar.
**Technical Analysis:**
– Resistance is observed near the 1.0915 level. A breakout above this level could push EUR/USD toward 1.0980.
– Support is nearby at 1.0850. If this level fails, the next support zone could be at 1.0790.
– RSI (Relative Strength Index) is currently neither overbought nor oversold, allowing room for more price movement.
**Outlook:**
Unless there is a sudden hawkish pivot from the Fed or stronger-than-expected economic indicators in the U.S., the EUR/USD pair may continue to trend higher. Traders will likely remain focused on upcoming U.S. inflation data, which could provide additional cues.
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## GBP/USD: British Pound Strengthens Amid Dollar Weakness
The British pound joined the euro in advancing against the U.S. dollar after the JOLTS report triggered a wave of selling in USD. The softening labor market adds pressure on the Fed’s future policy outlook, creating upward momentum for currencies like the pound.
**Key Drivers:**
– Dovish outlook for the Fed’s monetary policy following weak labor data.
– UK economic data has been mixed but shows resilience in wage growth, providing some support to the pound.
– Reduced volatility in global markets has also encouraged flows away from the dollar into higher-yielding or stable assets.
**Technical Analysis:**
– Immediate resistance for GBP/USD lies around 1.2775, with a breakout potentially opening the path toward 1.2830.
– Support is near the 20-day EMA at 1.2705 and further down at 1.2670.
– Momentum indicators are supportive for further upside, although overbought conditions may emerge if the rally extends too quickly.
**Outlook:**
Persistent dollar softness and investor optimism about the UK’s economic resilience could keep GBP/USD buoyant in the short term. However, traders will be looking toward the Bank of England’s next policy meeting to assess whether policy divergence might reemerge.
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## USD/CAD: Canadian Dollar Gains on Oil Prices and Dovish Fed Sentiment
The Canadian dollar benefited from the combination of a weaker U.S. dollar and a rebound in crude oil
Explore this further here: USD/JPY trading.