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U.S. Dollar Retreats As Producer Prices Fall: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD settled near the 1.1200 level as Euro Area Industrial Production exceeded analyst expectations.
- GBP/USD moved higher as UK GDP Growth Rate beat analyst forecasts.
- USD/JPY pulled back towards the 145.50 level amid falling Treasury yields.
U.S. Dollar Is Losing Ground As PPI Misses Estimates
U.S. Dollar Index is losing ground as traders react to Producer Prices report. The report indicated that PPI declined by -0.5% month-over-month in April, compared to analyst forecast of +0.2%.
From the technical point of view, U.S. Dollar Index needs to settle below the support at 100.20 – 100.40 to gain additional downside momentum.
EUR/USD Is Flat Despite The Better-Than-Expected Industrial Production Report
EUR/USD is mostly flat as traders focus on the Euro Area Industrial Production report. The report showed that Industrial Production increased by +2.6% month-over-month in March, compared to analyst forecast of +1.8%.
If EUR/USD declines below the 1.1150 level, it will get to the test of the nearest support level at 1.1110 – 1.1130.
GBP/USD Moved Higher As UK GDP Growth Rate Exceeded Estimates
GBP/USD gained ground as traders focused on the better-than-expected GDP Growth Rate report. The report showed that GDP Growth Rate was +1.3% in the first quarter, compared to analyst forecast of +1.2%.
In case GBP/USD manages to settle above the resistance at 1.3300 – 1.3320, it will move towards the next resistance level at 1.3420 – 1.3440.
USD/CAD Tests New Highs As Demand For Commodity-Related Currencies Falls
USD/CAD is moving higher despite the rebound in precious metals markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.
A move above the 1.4000 level will push USD/CAD towards the next resistance level at 1.4060 – 1.4080.
USD/JPY Tests New Lows As Treasury Yields Pull Back
USD/JPY is under pressure as traders focus on the pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 3.97% level, while the yield of 10-year Treasuries pulled back towards 4.45%.
If USD/JPY settles below the 50 MA at 145.43, it will move towards the support level, which is located in the 143.50 – 144.00 range.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.
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