EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground After PPI Report

Key Insights

• EUR/USD pulls back as traders react to the PPI report from the U.S. 
• GBP/USD moved higher after the release of the better-than-expected UK GDP report. 
• USD/JPY tested the key resistance level in the 144.65 – 145.00 range. 

U.S. Dollar

U.S. Dollar Index is moving higher as traders react to the PPI report, which showed that Producer Prices increased by 0.3% month-over-month in July. Analysts expected that PPI would grow by 0.2%, so the report exceeded analyst expectations.

If U.S. Dollar Index settles above the recent highs near the 102.85 level, it will move towards the resistance at 103.40 – 103.65.

EUR/USD

EUR/USD is trying to settle below the support at 1.0950 – 1.0975 as traders focus on rising Treasury yields.

In case EUR/USD manages to settle below 1.0950, it will move towards the next support level, which is located in the 1.0835 – 1.0850 range.

GBP/USD

GBP/USD moved higher as traders focused on the better-than-expected GDP report from UK. The report indicated that UK GDP increased by 0.5% month-over-month in June, compared to analyst consensus of +0.2%.

The nearest resistance level for GBP/USD is located in the 1.2725 – 1.2750 range. A move above 1.2750 will open the way to the test of the next resistance at 1.2970 – 1.3000.

USD/CAD

USD/CAD is swinging between gains and losses as rising commodity markets provide some support to the Canadian dollar.

If USD/CAD settles above the resistance in the 1.3430 – 1.3450 range, it will move towards the next resistance level, which is located at 1.3500 – 1.3520.

USD/JPY

USD/JPY tests the key resistance in the 144.65 – 145.00 level as traders stay focused on rising Treasury yields.

RSI is in the overbought territory, so the risks of a pullback are increasing. However, a move above the 145 level will provide USD/JPY with an opportunity to gain strong momentum.

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