U.S. Dollar Retreats As Traders React To PPI Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Lower As PPI Exceeds Analyst Estimates

U.S. Dollar Index is losing ground as traders focus on Producer Prices report. PPI increased by +0.5% month-over-month in January, compared to analyst forecast of +0.3%. Core PPI grew by +0.8%, while analysts expected that it would grow by +0.3%.

Today, traders also focused on Chicago PMI report for February. The report indicated that Chicago PMI increased from 54.0 in January to 57.7 in February, compared to analyst consensus of 52.8.

Currently, U.S. Dollar Index is trying to settle below the 50 MA at 97.69. In case this attempt is successful, U.S. Dollar Index will head towards the nearest support level, which is located in the 97.10 – 97.25 range.

EUR/USD Attempts To Settle Above The 1.1800 Level

EUR/USD is moving higher as traders react to Germany’s inflation data. Inflation Rate declined from 2.1% in January to 1.9% in February, compared to analyst forecast of 2%.

Today, traders also had a chance to take a look at Germany’s Unemployment Rate report. The report showed that Unemployment Rate remained unchanged at 6.3% in February, in line with analyst estimates.

The nearest resistance level for EUR/USD is located in the 1.1835 – 1.1850 range. If EUR/USD manages to settle above the 1.1850 level, it will move towards the next resistance at 1.1915 – 1.1930.

GBP/USD Pulls Back As UK Consumer Confidence Falls

GBP/USD is losing ground as traders focus on the UK Gfk Consumer Confidence report for February.

The report indicated that Consumer Confidence declined from -16 in January to -19 in February, compared to analyst consensus of -15.

From the technical point of view, GBP/USD settled below the previous support at 1.3485 – 1.3500 and is trying to settle below the 1.3450 level.

In case this attempt is successful, GBP/USD will head towards the support at 1.3400 – 1.3415. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

USD/CAD Is Losing Ground As Silver Gains 6%

USD/CAD tests new lows as traders focus on dynamics of commodity markets and react to Canada’s GDP report.

Canada’s GDP was unchanged in January, in line with analyst estimates. GDP Growth Rate was -0.2% in the fourth quarter of 2025, compared to analyst forecast of -0.1%.

Silver rallied by 6%, while oil markets gained 2%. Other commodity-related currencies also moved higher in today’s trading session.

USD/CAD is trying to settle below the support at 1.3650 – 1.3665. If USD/CAD manages to settle below the 1.3650 level, it will move towards the next support level at 1.3585 – 1.3600.

USD/JPY Is Mostly Flat As Japan’s Retail Sales Rise By 1.8%

USD/JPY is mostly flat as traders focus on economic reports from Japan. Retail Sales increased by +1.8% year-over-year in January, while analysts expected that they would decrease by -0.4%.

Industrial Production grew by +2.2% month-over-month in January, compared to analyst consensus of +5.3%. Housing Starts declined by -0.4% on a year-over-year basis, compared to analyst forecast of -1.6%.

Traders focus on the weakness of Japanese economy and do not believe that BoJ will be able to raise rates aggressively.

In case USD/JPY settles above the 157.00 level, it will move towards the resistance, which is located in the 158.00 – 158.50 range. On the support side, a move below the 154.50 – 155.00 level will push USD/JPY towards the next support at 151.50 – 152.00.

If you’d like to know more about how to trade forex, please visit our educational area.