U.S. Dollar Retreats After PPI Data: Market Analysis for Major Currency Pairs
PPI Data Spurs U.S. Dollar Retreat
The U.S. Dollar Index has retreated towards 101.50 in response to the latest Producer Prices Index (PPI) data. The PPI increased by 0.2% month-over-month in August, outperforming analyst expectations of +0.1%.
Major Currency Pair Responses
EUR/USD Gains Ground
EUR/USD strengthened after the European Central Bank (ECB) cut interest rates from 4.25% to 3.65%. A breakout above 1.1056 could lead to resistance testing between 1.1110 and 1.1135.
GBP/USD Rebounds
The GBP/USD pair is exhibiting upward momentum, trending towards 1.3100 despite rising U.S. Treasury yields. A move above this figure indicates potential resistance at 1.3120 to 1.3140.
USD/CAD Moves Higher
USD/CAD rises even as commodity markets rally. Technical analysis suggests that settling above 1.3620 will foster further upside potential.
USD/JPY Awaiting Catalysts
USD/JPY is currently fluctuating around the support level of 141.80 to 142.50. Should it drop below 141.80, expect a move to 138.50 to 139.00 support.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.