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

U.S. Dollar Retreats As Traders Focus On Producer Prices Report

U.S. Dollar Index is losing ground as traders react to Producer Prices data for March. The report indicated that PPI increased by +0.5% month-over-month, compared to analyst consensus of +1.1%. The previous report was revised from +0.7% to +0.5%.

Core PPI grew by +0.1%, compared to analyst forecast of +0.5%. The lower-than-expected PPI data put pressure on the American currency.

Currently, U.S. Dollar Index is trying to settle below the support level at 98.00 – 98.15. In case this attempt is successful, U.S. Dollar index will move towards the next support, which is located in the 97.15 – 97.30 range.

EUR/USD Attempts To Settle Above 1.1800

EUR/USD gains ground as traders focus on the strong pullback in oil prices. WTI oil declined below the $92.50 level, while Brent oil settled below $95.50. Oil traders bet on progress in U.S. – Iran negotiations.

Today, traders also had a chance to take a look at the Wholesale Prices report for March. The report showed that Wholesale Prices increased by +2.7% on a month-over-month basis, compared to analyst forecast of +0.4%.

EUR/USD moved above the resistance at 1.1765 – 1.1780 and is trying to settle above the 1.1800 level. If EUR/USD manages to settle above 1.1800, it will head towards the next resistance, which is located in the 1.1835 – 1.1850 range.

GBP/USD Tests Resistance At 1.3570 – 1.3585

GBP/USD moved higher as demand for riskier assets increased amid signs of potential de-escalation in the Middle East.

From the technical point of view, GBP/USD is trying to settle above the resistance level at 1.3570 – 1.3585. If GBP/USD manages to settle above the 1.3585 level, it will head towards the next resistance at 1.3685 – 1.3700.

USD/CAD Tests New Lows

USD/CAD pulled back as traders focused on the rally in silver markets. Silver prices gained 5% amid rising demand for precious metals. The pullback in the oil markets did not put any pressure on the Canadian dollar. Other commodity-related currencies have also gained ground in today’s trading session.

USD/CAD settled below the 1.3800 level and is trying to settle below 1.3750. In case this attempt is successful, USD/CAD will head towards the nearest support at 1.3700 – 1.3715.

On the upside, USD/CAD needs to climb back above the resistance at 1.3800 – 1.3815 to have a chance to gain upside momentum in the near term. If USD/CAD manages to settle back above 1.3815, it will head towards the 50 MA at 1.3864.

USD/JPY Moves Lower As Treasury Yields Fall

USD/JPY failed to settle above the 160.00 level and declined below the 159.00 level as traders reacted to the pullback in Treasury yields. The yield of 2-year Treasuries moved towards the 3.75% level, while the yield of 10-year Treasuries settled near 4.27%.

There are no signs of interventions from the BoJ which is not surprising as USD/JPY did not climb above the key 160.00 level.

The nearest support for USD/JPY is located in the 158.00 – 158.50 range. If USD/JPY declines below the 158.00 level, it will head towards the next support at 154.50 – 155.00.

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