U.S. Dollar Retreats As Inflation Rate Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Under Pressure

U.S. Dollar Index is losing ground as traders focus on inflation reports. Inflation Rate increased from 2.3% in April to 2.4% in May, compared to analyst forecast of 2.5%. Core Inflation Rate remained unchanged at 2.8%, while analysts expected that it would grow to 2.9%.

If U.S. Dollar Index settles below the 98.50 level, it will head towards the support level, which is located in the 98.00 – 98.20 range.

EUR/USD Tests New Highs

EUR/USD is moving higher as traders react to U.S. inflation data. Currently, EUR/USD is trying to settle above the 1.1500 level.

In case this attempt is successful, EUR/USD will move towards the resistance level, which is located in the 1.1555 – 1.1570 range.

GBP/USD Rebounds After Yesterday’s Pullback

GBP/USD rebounds from recent lows as traders focus on general weakness of the American currency. RSI remains in the moderate territory, and there is plenty of room to gain momentum in the near term.

A move above the 1.3550 level will open the way to the test of the resistance level at 1.3620 – 1.3640.

USD/CAD Attempts To Settle Below The 1.3650 Level

USD/CAD continues its attempts to settle below the support at 1.3650 – 1.3665 as traders focus on the strong rally in the oil markets.

In case USD/CAD manages to settle below the 1.3650 level, it will move towards the next support level at 1.3575 – 1.3590.

USD/JPY Is Losing Ground Amid Falling Treasury Yields

USD/JPY moved away from recent highs as traders reacted to the pullback in Treasury yields, which was triggered by U.S. inflation data. The yield of 2-year Treasuries pulled back towards the 3.95% level, while the yield of 10-year Treasuries settled near 4.45%.

A successful test of the nearest support level at 143.50 – 144.00 will open the way to the test of the next support at 140.00 – 140.50.

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