U.S. Dollar Moves Higher As PPI Exceeds Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Traders Focus On Producer Prices Report

U.S. Dollar Index gained some ground as traders reacted to Producer Prices data. PPI increased by 0.4% month-over-month in November, compared to analyst consensus of +0.2%. Core PPI grew by 0.2%, in line with analyst estimates.

In case U.S. Dollar Index manages to settle above the 107.00 level, it will get to the test of the nearest resistance at 107.10 – 107.30.

EUR/USD Is Volatile After ECB Interest Rate Decision

EUR/USD moved higher in volatile trading after the release of the ECB Interest Rate Decision. The ECB cut the rate from 3.4% to 3.15%, in line with analyst consensus.

In case EUR/USD manages to settle back above the resistance at 1.0525 – 1.0540, it will head towards the next resistance level, which is located in the 1.0620 – 1.0640 range.

GBP/USD Attempts To Settle Below The Support At 1.2700 – 1.2715

GBP/USD is currently trying to settle below the support at 1.2700 – 1.2715. Traders bet that BoE will be more dovish than Fed at the next meeting.

If GBP/USD settles below the 1.2700 level, it will head towards the next support, which is located in the 1.2575 – 1.2590 range.

USD/CAD Tests The 1.4200 Level As Commodity Markets Pull Back

USD/CAD is moving higher as traders focus on the strong pullback in commodity markets.

A move above the 1.4200 level will open the way to the test of the next resistance level, which is located in the 1.4330 – 1.4350 range.

USD/JPY Remains Stuck Below The 153.00 Level

USD/JPY is losing some ground despite rising Treasury yields. From the technical point of view, USD/JPY consolidates below the nearest resistance at 153.00 – 153.50.

If USD/JPY climbs above the 153.50 level, it will gain additional upside momentum and move towards the next resistance level at 156.00 – 156.50.

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