U.S. Dollar Pulls Back As PCE Price Index Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats From Yearly Highs

U.S. Dollar Index pulls back as traders react to PCE Price Index report. The report indicated that PCE Price Index increased by 0.1% month-over-month in November, compared to analyst forecast of 0.2%. Core PCE Price Index has also increased by 0.1%, missing the analyst estimate of 0.2%.

In case U.S. Dollar Index settles below the 107.80 level, it will head towards the nearest support, which is located in the 107.10 – 107.30 range.

EUR/USD Rebounds As Germany’s PPI Exceeds Estimates

EUR/USD moved higher as traders focused on Germany’s PPI report. The report showed that PPI increased by 0.1% year-over-year in November, compared to analyst forecast of -0.3%.

The nearest resistance level for EUR/USD is located in the 1.0435 – 1.0450 range. A move above the 1.0450 level will push EUR/USD towards the 50 MA at 1.0473.

GBP/USD Attempts To Settle Above 1.2550

GBP/USD rebounded from recent lows despite the disappointing Retail Sales report for November. The report indicated that Retail Sales increased by 0.2% on a month-over-month basis, compared to analyst consensus of +0.5%.

A successful test of the resistance at 1.2575 – 1.2590 will open the way to the test of the 50 MA at 1.2666.

USD/CAD Is Losing Ground Amid Rising Demand For Commodity-Related Currencies

USD/CAD is losing ground as traders focus on rising commodity markets. Other commodity-related currencies are also moving higher in today’s trading session.

In case USD/CAD declines below the support at 1.4330 – 1.4350, it will move towards the 50 MA at 1.4268.

USD/JPY Tests Support At 156.00 – 156.50

USD/JPY pulls back as traders focus on falling Treasury yields. The yield of 2-year Treasuries declined below the 4.30% level, while the yield of 10-year Treasuries pulled back towards 4.50%.

A move below the support at 156.00 – 156.50 will open the way to the test of the next support level at 153.00 – 153.50.

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