The USD moves higher after JOLTs and ISM show better employment

The ISM Manufacturing Index saw the employment component will back above the 50 level at 51.4 versus 48.4 last month. Meanwhile the JOLTs data also came in a stronger and suggest that employment remains at the worst steady. With the unemployment rate in the US at 3.7% - near historic low levels - the Fed is looking for an uptick in 2023 to ease tightness and the potential for higher wages. The data did was not encouraging on that front (or at least not any worse).

Looking at the US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term, there has been an uptick since the report.

• USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term. The USDJPY has moved back above its falling 100 hour moving average at 131.259. That is the first move above the level since December 29. The 200 hour moving average 132.225 is the next upside target. The current price trades at 131.78 between those two moving averages.

• EURUSD: The EURUSD has moved back toward a swing area between 1.0584 and 1.0594, after toying with a break of the 200 hour MA above at 1.06327 (see going on in the chart below). The low reached 1.0581 but has returned back into the swing area. Break below 1.0584 with momentum, and traders would look toward the swing low from December 22 at 1.05719 followed by the 61.8% retracement of the move up from the December 7 low level comes in 1.05543. Yesterday the low reached 1.05155. That level was the 50% midpoint of the 2022 trading range (not shown). Keep that level in mind going forward for the EURUSD as a key bullish/bearish barometer into the new trading year. Conversely, move back above 1.0594 (and 1.0600), and the market may tilt back to the upside least in the short term as the selling dries up and the impact wanes. Remember we still have the US jobs report on Friday.

• GBPUSD: The GBPUSD moved lower after the JOLTs and ISM da in the process move back below its cluster of moving averages including the 200 day moving average, the 100 hour moving average, and the 200 hour moving average (between 1.2034 and 1.20413). The low price reached 1.2013. That low tested the high of the swing area between 1.1991 and 1.2010 (see red numbered circles), but found willing buyers against the support area. The price is back above the cluster of moving averages with the 200 hour moving average 1.20413 the highest of the bunch (the 200 day MA is at 1.2034). The downside survived the fall and test of the key swing area.