U.S. Dollar Retreats After PPI Data: Market Analysis for Major Currency Pairs

Thursday, 12 September 2024, 09:21

U.S. Dollar retreats as PPI data impacts market dynamics. Key insights for EUR/USD, GBP/USD, USD/CAD, and USD/JPY show varied responses to economic shifts.
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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.

To track the wider economic indicators, please view our comprehensive economic calendar.


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.


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