U.S. Dollar Pulls Back After PPI Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats As PPI Misses Expectations

U.S. Dollar Index pulls back as traders react to PPI reports. The reports indicated that PPI increased by 0.2% month-over-month in December, compared to analyst forecast of +0.3%. Core PPI was unchanged, while analysts expected that it would increase by 0.3%.

In case U.S. Dollar Index declines below the 50 MA at 109.06, it will move towards the nearest support level, which is located in the 108.30 – 108.50 range.

EUR/USD Attempts To Settle Above 1.0300

EUR/USD moved away from yearly lows as traders reacted to U.S. economic data and bet that Fed may be less hawkish due to lower-than-expected PPI.

A move above the 50 MA at 1.0301 will push EUR/USD towards the nearest resistance level at 1.0330 – 1.0345.

GBP/USD Rebounds From Session Lows

GBP/USD tests resistance at 1.2200 – 1.2215 as traders focus on general weakness of the U.S. dollar.

A successful test of this level will push GBP/USD towards the next resistance at 1.2355 – 1.2370. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

USD/CAD Tests Support At 1.4330 – 1.4350

USD/CAD pulls back amid rising demand for commodity-related currencies. The pullback in the oil markets did not put pressure on the Canadian dollar.

The nearest support level for USD/CAD is located in the 1.4330 – 1.4350 range. A move below the 1.4330 level will push USD/CAD towards the next support at 1.4100 – 1.4120.

USD/JPY Remains Stuck Below The Key Resistance At 158.50 – 159.00

USD/JPY gains ground as Treasury yields stay close to recent highs despite the lower-than-expected PPI report.

The technical picture remains unchanged as USD/JPY needs to settle above the key resistance at 158.50 – 159.00 to gain additional upside momentum in the near term.

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