U.S. Dollar Moves Higher As Traders React To PCE Price Index: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Some Ground Ahead Of The Weekend

U.S. Dollar Index moved higher as traders reacted to PCE Price Index report for April. The report showed that PCE Price Index increased by +0.1% month-over-month, in line with analyst estimates.

In case U.S. Dollar Index manages to settle back above the 50 MA at 99.51, it will move towards the nearest resistance level, which is located in the 100.20 – 100.40 range.

EUR/USD Pulls Back As Traders React To Germany’s Inflation Data

EUR/USD pulled back as traders focused on inflation data from Germany. Inflation Rate remained unchanged at 2.1% in May, compared to analyst forecast of 2%. Germany’s Retail Sales grew by +2.3% year-over-year in April, compared to analyst consensus of +1.8%.

If EUR/USD manages to settle below the 50 MA at 1.1329, it will head towards the nearest support level at 1.1275 – 1.1290.

GBP/USD Is Heading Towards The Support At 1.3420 – 1.3440

GBP/USD is moving towards the support at 1.3420 – 1.3440 amid lack of additonal positive catalysts for the pound.

A move below the 1.3420 level will push GBP/USD towards the next support at 1.3250 – 1.3270.

USD/CAD Retreats As Canada’s GDP Data Beats Estimates

USD/CAD moved lower as traders focused on the better-than-expected GDP Growth Rate report from Canada, which showed that GDP grew at an annualized rate of 2.2% in the first quarter.

If USD/CAD settles below the 1.3750 level, it will head towards the support level, which is located in the 1.3650 – 1.3665 range.

USD/JPY Tests Support At 143.50 – 144.00

USD/JPY continues its attempts to settle below the support level at 143.50 – 144.00 as Treasury yields test new lows. In Japan, traders focused on the better-than-expected Retail Sales report. The report showed that Retail Sales increased by +3.3% year-over-year in April, compared to analyst forecast of +3.1%.

A successful test of the support at 143.50 – 144.00 will push USD/JPY towards the next support level at 140.00 – 140.50.

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