EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats After Dovish PPI Report

U.S. Dollar

U.S. Dollar Index pulls back as traders react to Producer Prices report. PPI increased by 0.1% month-over-month in July, compared to analyst consensus of +0.2%. Core PPI was unchanged on a month-over-month basis, while analysts expected that it would grow by 0.2%. Treasury yields moved lower as bond traders bet on a less hawkish Fed.

If U.S. Dollar Index settles below the 102.50 level, it will head towards the next support, which is located in the 102.00 – 102.20 range.

EUR/USD

EUR/USD gained ground despite the weak Euro Area ZEW Economic Sentiment Index report. The report showed that Economic Sentiment declined from 43.7 in July to 17.9 in August, compared to analyst consensus of 35.4. Traders shruged off worries about EU economic performance and focused on U.S. producer prices data.

If EUR/USD stays above the 1.0950 level, it will head towards the nearest resistance at 1.0980 – 1.1000.

GBP/USD

GBP/USD is moving higher, supported by the better-than-expected UK Unemployment Rate report. The report showed that UK Unemployment Rate declined from 4.4% in May to 4.2% in June, compared to analyst consensus of 4.5%.

In case GBP/USD stays above the 1.2800 level, it will move towards the next resistance at 1.2930 – 1.2950.

USD/CAD

USD/CAD is losing ground despite the pullback in the oil markets. Traders focus on general weakness of the U.S. dollar after the release of PPI reports.

A move below the 1.3700 level will push USD/CAD towards the support at 1.3600 – 1.3620.

USD/JPY

USD/JPY is moving lower as traders focus on falling Treasury yields. From a big picture point of view, USD/JPY has stabilized after recent volatility.

The nearest support level for USD/JPY is located in the 146.00 – 146.50 range. In case USD/JPY declines below the 146.00 level, it will head towards the next support at 141.00 – 142.00.

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