​NFP-fuelled dollar rally likely to fade in EUR/USD, GBP/USD and USD/CAD

NFP-fuelled dollar surge looks to have run its course for EUR/USD, GBP/USD, and USD/CAD.

EUR/USD regaining ground after sharp decline

Friday saw EUR/USD decline sharply off the back of a strong set of US jobs numbers. We are starting to see some of that move reversed today, with the pair regaining some ground ahead of a big week of economic and political events.

Watch out for $1.1066 resistance up ahead, with a break through there pointing towards further short-term upside. Given the medium-sized retracement seen over the course of Friday, a break back below $1.1039 would signal a deeper move coming to pass.

GBP/USD breaks into another fresh high

GBP/USD has continued its ascent, with the pair breaking through the $1.3166 peak from Friday.

This points towards further upside to come, with markets clearly feeling optimistic about the upcoming election. As such, long positions are favoured here, with a break back below $1.31 required to negate this bullish outlook.

USD/CAD turning lower from key resistance

USD/CAD saw a sharp rise on Friday, with a strong US jobs report being enhanced by an unimpressive report from Canada.

However, those gains appear to be subsiding here, with the price having run into the $1.3271 resistance level. With the stochastic seemingly about to roll over from overbought territory, watch for a possible short-term decline today. A break through $1.3271 would be required to negate this potential move.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.