U.S. Dollar Retreats After PPI Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Moved Back Towards 101.50

U.S. Dollar Index pulls back as traders react to Producer Prices data. PPI increased by 0.2% month-over-month in August, compared to analyst consensus of +0.1%. Core PPI grew by 0.3%, while analysts expected that it would increase by 0.2%. Today, traders also focused on the Initial Jobless Claims report. The report showed that 230,000 Americans filed for unemployment benefits in a week, in line with analyst expectations.

Currently, U.S. Dollar Index is trying to settle below the 50 MA at 101.48. In case this attempt is successful, it will head towards the support at 100.80 – 101.00.

EUR/USD Gains Ground After ECB Decision

EUR/USD moved higher as ECB cut the interest rate from 4.25% to 3.65%, in line with analyst expectations.

A move above the 50 MA at 1.1056 will open the way to the test of the resistance at 1.1110 – 1.1135.

GBP/USD Rebounds Despite Rising Treasury Yields

GBP/USD gained upside momentum and moved towards the 1.3100 level. RSI remains in the moderate territory, so there is enough room to gain additional momentum in the near term.

In case GBP/USD climbs above 1.3100, it will head towards the resistance at 1.3120 – 1.3140.

USD/CAD Gains Ground Despite Rally In Commodity Markets

USD/CAD is moving higher as traders ignore the rally in commodity markets. Other commodity-related currencies are gaining ground in today’s trading session.

From the technical point of view, USD/CAD needs to settle above the 1.3620 level to gain additional upside momentum.

USD/JPY Traders Wait For Additional Catalysts

USD/JPY remains stuck near the support at 141.80 – 142.50 as traders wait for stronger catalysts.

If USD/JPY pulls back below the 141.80 level, it will move towards the support at 138.50 – 139.00. On the upside, a move above the 50 MA at 143.66 will open the way to the test of the resistance at 146.00 – 146.50.

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