U.S. Dollar Retreats As Producer Prices Fall: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Losing Ground As PPI Misses Estimates

U.S. Dollar Index is losing ground as traders react to Producer Prices report. The report indicated that PPI declined by -0.5% month-over-month in April, compared to analyst forecast of +0.2%.

From the technical point of view, U.S. Dollar Index needs to settle below the support at 100.20 – 100.40 to gain additional downside momentum.

EUR/USD Is Flat Despite The Better-Than-Expected Industrial Production Report

EUR/USD is mostly flat as traders focus on the Euro Area Industrial Production report. The report showed that Industrial Production increased by +2.6% month-over-month in March, compared to analyst forecast of +1.8%.

If EUR/USD declines below the 1.1150 level, it will get to the test of the nearest support level at 1.1110 – 1.1130.

GBP/USD Moved Higher As UK GDP Growth Rate Exceeded Estimates

GBP/USD gained ground as traders focused on the better-than-expected GDP Growth Rate report. The report showed that GDP Growth Rate was +1.3% in the first quarter, compared to analyst forecast of +1.2%.

In case GBP/USD manages to settle above the resistance at 1.3300 – 1.3320, it will move towards the next resistance level at 1.3420 – 1.3440.

USD/CAD Tests New Highs As Demand For Commodity-Related Currencies Falls

USD/CAD is moving higher despite the rebound in precious metals markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the 1.4000 level will push USD/CAD towards the next resistance level at 1.4060 – 1.4080.

USD/JPY Tests New Lows As Treasury Yields Pull Back

USD/JPY is under pressure as traders focus on the pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 3.97% level, while the yield of 10-year Treasuries pulled back towards 4.45%.

If USD/JPY settles below the 50 MA at 145.43, it will move towards the support level, which is located in the 143.50 – 144.00 range.

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