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U.S. Dollar Pulls Back As PCE Price Index Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD climbed above the 1.0400 level as traders focused on U.S. economic data.
- USD/CAD pulled back amid rising commodity markets.
- USD/JPY declined as traders reacted to falling Treasury yields.
U.S. Dollar Retreats From Yearly Highs
U.S. Dollar Index pulls back as traders react to PCE Price Index report. The report indicated that PCE Price Index increased by 0.1% month-over-month in November, compared to analyst forecast of 0.2%. Core PCE Price Index has also increased by 0.1%, missing the analyst estimate of 0.2%.
In case U.S. Dollar Index settles below the 107.80 level, it will head towards the nearest support, which is located in the 107.10 – 107.30 range.
EUR/USD Rebounds As Germany’s PPI Exceeds Estimates
EUR/USD moved higher as traders focused on Germany’s PPI report. The report showed that PPI increased by 0.1% year-over-year in November, compared to analyst forecast of -0.3%.
The nearest resistance level for EUR/USD is located in the 1.0435 – 1.0450 range. A move above the 1.0450 level will push EUR/USD towards the 50 MA at 1.0473.
GBP/USD Attempts To Settle Above 1.2550
GBP/USD rebounded from recent lows despite the disappointing Retail Sales report for November. The report indicated that Retail Sales increased by 0.2% on a month-over-month basis, compared to analyst consensus of +0.5%.
A successful test of the resistance at 1.2575 – 1.2590 will open the way to the test of the 50 MA at 1.2666.
USD/CAD Is Losing Ground Amid Rising Demand For Commodity-Related Currencies
USD/CAD is losing ground as traders focus on rising commodity markets. Other commodity-related currencies are also moving higher in today’s trading session.
In case USD/CAD declines below the support at 1.4330 – 1.4350, it will move towards the 50 MA at 1.4268.
USD/JPY Tests Support At 156.00 – 156.50
USD/JPY pulls back as traders focus on falling Treasury yields. The yield of 2-year Treasuries declined below the 4.30% level, while the yield of 10-year Treasuries pulled back towards 4.50%.
A move below the support at 156.00 – 156.50 will open the way to the test of the next support level at 153.00 – 153.50.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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