U.S. Dollar Gains Ground As PPI Exceeds Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher After Producer Prices Report

U.S. Dollar Index gains ground as traders focus on the Producer Prices report. PPI increased by +1.1% month-over-month in May, compared to analyst forecast of +0.7%. Core PPI grew by +0.4%, while analysts expected that it would increase by +0.5%.

Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 229,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 219,000.

Currently, U.S. Dollar Index is trying to settle above the 100.25 level. In case U.S. Dollar Index settles above this level, it will head towards the nearest resistance, which is located in the 100.50 – 100.65 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

EUR/USD Retreats As Traders Focus On ECB Decision

EUR/USD is losing ground as traders react to the ECB Interest Rate Decision. The European Central Bank raised the interest rate from 2.15% to 2.4%, in line with analyst consensus.

ECB noted that the war in the Middle East generated inflation pressures. According to ECB, headline inflation is expected to average 3.0% in 2026, 2.3% in 2027, and 2.0% in 2028.

Currently, EUR/USD is trying to settle below the support level at 1.1500 – 1.1515. In case this attempt is successful, EUR/USD will move towards the next support, which is located in the 1.1415 – 1.1430 range.

GBP/USD Tests Support At 1.3335 – 1.3350

GBP/USD pulls back as traders focus on escalation in the Middle East. President Trump has recently announced that the U.S. will attack Iran again. Interestingly, oil prices are losing some ground despite Trump’s threats.

GBP/USD attempts to settle below the support level at 1.3335 – 1.3350. If GBP/USD settles below the 1.3335 level, it will move towards the next support at 1.3215 – 1.3230.

USD/CAD Tests New Highs

USD/CAD attempts to settle above the 1.4000 level despite the rebound in precious metals markets. Other commodity-related currencies are losing ground in today’s trading session.

If USD/CAD manages to settle above the 1.4000 level, it will move towards the nearest resistance, which is located in the 1.4035 – 1.4050 range. In case USD/CAD climbs above the 1.4050 level, it will head towards the next resistance at 1.4125 – 1.4140. It should be noted that RSI has recently moved into overbought territory, so the risks of a pullback are increasing.

USD/JPY Is Flat As Bulls Stay Cautious

USD/JPY remains stuck near the 160.50 level as traders bet that high oil prices will force the Bank of Japan to be dovish in order to provide support to the Japanese economy.

There are no signs of interventions from the Bank of Japan, and it looks that BoJ is ready to tolerate the current weakness of the yen. It remains to be seen whether BoJ will stay inactive in case USD/JPY attempts to settle above the 162.00 level, so bulls are cautious.

A move above the 160.50 level will push USD/JPY towards the nearest resistance level, which is located in the 161.50 – 162.00 range. A successful test of the 162.00 level will show that BoJ has lost control and is not able to defend the Japanese currency.

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