Forex Market Analysis - January 9, 2026

Author: Vladimir Zernov

Published: January 9, 2026

Key Highlights

• The U.S. Dollar Index (DXY) is gaining strength as job market data shows a decrease in the unemployment rate.
• EUR/USD is under pressure despite a positive retail sales report from the EU.
• GBP/USD is testing the 1.3400 level, while USD/CAD reacts to rising unemployment in Canada.
• USD/JPY is moving higher due to rising Treasury yields.

U.S. Dollar Performance

The U.S. Dollar Index has shown significant gains, driven by the latest Non-Farm Payrolls report, which indicated an addition of 50,000 jobs in December, slightly below the forecast of 60,000. The unemployment rate fell from 4.5% in November to 4.4%, surpassing analyst expectations of 4.5%. This positive labor market data has provided substantial support for the U.S. dollar.

If the U.S. Dollar Index maintains its position above the resistance level of 98.85 – 99.00, it is expected to target the next resistance at 100.25 – 100.40.

EUR/USD Analysis

Despite a better-than-expected retail sales report from the EU, which showed a month-over-month increase of +0.2% in November (versus a forecast of +0.1%), the EUR/USD pair remains under pressure. The current support level is being tested at 1.1615 – 1.1630, and a successful test could lead to a further decline towards the next support level at 1.1500 – 1.1515.

GBP/USD Movement

The GBP/USD pair has been affected by the focus on U.S. economic data, attempting to settle below the 1.3400 level but rebounding to around 1.3420. A move below 1.3400 could push the pair towards the nearest support level at 1.3360 – 1.3375.

USD/CAD Insights

In the USD/CAD pair, traders are reacting to Canada’s unemployment rate, which rose from 6.5% in November to 6.8% in December, against an expected 6.6%. The pair is currently testing resistance at 1.3890 – 1.3905, and if it settles above this level, it may advance towards the next resistance at 1.3980 – 1.3995.

USD/JPY Trends

The USD/JPY pair is gaining ground as Treasury yields rise, with the 2-year Treasury yield surpassing 3.50% and the 10-year yield exceeding 4.15%. The pair is attempting to settle above the resistance level of 158.00 – 158.50, and a successful attempt could lead to a move towards the next resistance at 161.50 – 162.00.

Conclusion

The U.S. dollar is showing strength due to favorable job market data, while other currency pairs are reacting to various economic indicators. Traders should keep an eye on the support and resistance levels mentioned for potential trading opportunities.