EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As PPI Exceeds Expectations

U.S. Dollar

U.S. Dollar Index gains ground as traders react to Producer Prices data. PPI increased by 0.6% month-over-month in February, compared to analyst consensus of +0.3%. Core PPI grew by 0.3%, while analysts expected that it would increase by 0.2%. The reports indicated that Fed will be forced to be more hawkish as inflation remains a serious problem. It should be noted that the recent Inflation Rate and Core Inflation Rate have also exceeded analyst expectations.  Today, traders also focused on the Retail Sales report, which showed that Retail Sales increased by 0.6% month-over-month in February, missing analyst estimates.

The nearest resistance level for U.S. Dollar Index is located in the 103.50 – 103.75 range. A move above 103.75 will push U.S. Dollar Index towards the next resistance at 104.40 – 104.60.

EUR/USD

EUR/USD pulled back as traders focused on producer prices data from the U.S.

In case EUR/USD settles below the support at 1.0900 – 1.0920, it will move towards the next support level at 1.0810 – 1.0830.

GBP/USD

GBP/USD moved lower as traders reacted to the U.S. producer prices data. Treasury yields are moving higher, providing significant support to the American currency.

If GBP/USD stays below the 1.2750 level, it will head towards the nearest support, which is located in the 1.2650 – 1.2685 range.

USD/CAD

USD/CAD gained ground as rising Treasury yields offset the rally in the oil markets. Other commodity-related currencies have also moved lower in today’s trading session.

In case USD/CAD settles above the resistance at 1.3480 – 1.3500, it will move towards the next resistance level at 1.3600 – 1.3620.

USD/JPY

USD/JPY tests new highs as traders focus on rising Treasury yields. Most likely, the Fed will be more hawkish than previously expected, which is bullish for USD/JPY.

If USD/JPY climbs above the 50 MA at 148.30, it will head towards the resistance at 149.50 – 150.00.

For a look at all of today’s economic events, check out our economic calendar.