U.S. Dollar Gains Ground As Traders React To Initial Jobless Claims Data
Published: January 08, 2026
Author: Vladimir Zernov
Key Points
- EUR/USD pulled back as Euro Area Economic Sentiment missed analyst estimates.
- GBP/USD moved lower as UK house prices declined by -0.6% in December.
- USD/JPY made an attempt to settle above the 157.00 level as Japan's Consumer Confidence declined.
Market Overview
The U.S. Dollar Index (DXY) is testing resistance levels between 98.85 and 99.00, buoyed by a better-than-expected Initial Jobless Claims report. The report indicated that 208,000 Americans filed for unemployment benefits, slightly below the forecast of 210,000. A successful break above the current resistance could lead the index towards the next resistance range of 100.25 to 100.40.
EUR/USD Analysis
The EUR/USD pair has pulled back following the release of the Euro Area Economic Sentiment report, which showed a decrease from 97.1 in November to 96.7 in December, missing the analyst forecast of 97. If the pair settles below the 1.1650 level, it may head towards the nearest support at 1.1615 to 1.1630.
GBP/USD Analysis
GBP/USD has declined as traders reacted to the Halifax House Prices Index, which reported a month-over-month decline of -0.6% in December. This decline in house prices signals potential weakness in the UK economy. Should GBP/USD fall below the 1.3415 level, it may target support at 1.3360 to 1.3375.
USD/CAD Analysis
The USD/CAD pair continues to strengthen as demand for commodity-related currencies wanes. A successful test of the resistance at 1.3890 to 1.3905 could pave the way for a move towards the next resistance level at 1.3980 to 1.3995.
USD/JPY Analysis
USD/JPY is attempting to settle above the 157.00 level, influenced by a weak Consumer Confidence report from Japan, which decreased from 37.5 in November to 37.2 in December, below the forecast of 37.8. A move above 157.00 could push USD/JPY towards the resistance level at 158.00 to 158.50.
Conclusion
The U.S. Dollar is gaining traction against major currencies as economic data influences market sentiment. Traders are closely monitoring key levels in EUR/USD, GBP/USD, USD/CAD, and USD/JPY for potential trading opportunities.