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

U.S. Dollar Is Under Strong Pressure After Producer Prices Report

U.S. Dollar Index is losing ground as traders react to Producer Prices data. PPI increased by +0.1% month-over-month in May, compared to analyst forecast of +0.2%. Core PPI grew by +0.1%, while analysts expected that it would increase by +0.3%.

Currently, U.S. Dollar Index is trying to settle below the support at 98.00 – 98.20. In case this attempt is successful, it will head towards the next support level, which is located in the 96.70 – 96.90 range.

EUR/USD Tests New Highs

EUR/USD tested new highs as traders reacted to economic reports from the U.S. Initial Jobless Claims report showed that 248,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 240,000.

If EUR/USD manages to settle above the resistance at 1.1550 – 1.1570, it will move towards the next resistance level at 1.1685 – 1.1700. RSI is in the overbought territory, so the risks of a pullback are increasing.

GBP/USD Tests Resistance At 1.3620 – 1.3640

GBP/USD moved higher despite the disappointing GDP report from the UK. GDP declined by -0.3% month-over-month in April, compared to analyst consensus of -0.1%.

A move above the resistance at 1.3620 – 1.3640 will push GBP/USD towards the next resistance level at 1.3735- 1.3750.

USD/CAD Attempts To Settle Below 1.3600

USD/CAD tested new lows amid rising demand for commodity-related currencies.

From the technical point of view, USD/CAD settled below the support at 1.3650 – 1.3665 and is moving towards the next support level at 1.3575 – 1.3590.

USD/JPY Moves Lower As Treasury Yields Pull Back

USD/JPY tests support at 143.50 – 144.00 as traders focused on the strong pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 3.90% level, while the yield of 10-year Treasuries settled near 4.35%.

If USD/JPY settles below 143.50, it will head towards the next support level at 140.00 – 140.50.

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