U.S. Dollar Rallies As PPI Beats Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Rebounds As Traders Focus On Inflation Risks

U.S. Dollar Index gains ground as traders react to Producer Prices report. The report indicated that PPI increased by +0.9% month-over-month in July, compared to analyst forecast of +0.2%. Tariffs had a material impact on Producer Prices, and inflation risks have increased.

Currently, U.S. Dollar Index is trying to settle above the resistance at 98.00 – 98.20. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance level, which is located in the 99.20 – 99.40 range.

EUR/USD Retreats As Traders Cut Bets On Dovish Fed

EUR/USD pulls back as traders focus on U.S. PPI report. In the EU, traders had a chance to take a look at the Euro Area Industrial Production report for June. The report showed that Industrial Production declined by -1.3% month-over-month, compared to analyst forecast of -1%.

If EUR/USD settles below the 50 MA at 1.1636, it will move towards the support level at 1.1575 – 1.1590.

GBP/USD Pulls Back As Traders React To U.S. Producer Prices Data

GBP/USD is losing ground despite the better-than-expected UK GDP report. The report indicated that GDP increased by +0.4% month-over-month in June, compared to analyst consensus of +0.1%.

A move below the 1.3530 level opens the way to the test of the support level, which is located in the 1.3485 – 1.3500 range.

USD/CAD Attempts To Settle Above 1.3800

USD/CAD tests new highs as demand for commodity-related currencies falls despite rising oil markets.

In case USD/CAD settles above the 1.3800 level, it will head towards the resistance at 1.3845 – 1.3860.

USD/JPY Gains Ground As Treasury Yields Rebound

USD/JPY tests resistance at 147.50 – 148.00 as traders focus on rising Treasury yields.

In case this test is successful, USD/JPY will move towards the next resistance at 151.00 – 151.50.

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