FxWirePro: Forex Daily Update

The US dollar index trades weak ahead of US PPI data. It hit a low of 105.05 yesterday and is currently trading around 105.258.

Economists anticipate PPI to increase  0.30% m/m in Apr from 0.20% the previous month. Core PPI, which excludes food and energy costs, is expected to have risen 0.20% month-on-month in line with the estimate.

Dallas Fed President Lorie Logan said that the central bank should keep rates on hold to tackle inflation risks.

According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 96.5% from 91.3% a week ago.

Major resistance- 105.60/106.50

Major support- 104.50/103.80

Major economic data for the week

May 14th, 2024, US PPI (12:30 pm GMT)

                            Fed Chairman Powell (2 pm GMT)

EURUSD-

EURUSD trading sideways with intraday bias remains neutral. Markets eye US inflation data for further movement. It hit a high of 1.08068 yesterday and is currently trading around 1.07703.

May 14th, 2024, Germany ZEW economic sentiment (9 am GMT)

Major resistance-1.0820,1.0865

Major support- 1.0720,1.0660
 

Yen-

The pair has been trading higher despite hawkish signals from the Bank of Japan. Any break above 157 confirms further bullishness.

Major Resistance- 157,158

Major support- 155,153.40.

Canadian Dollar

The Canadian dollar trades flat ahead of the US PPI. Any break below 1.3600 confirms further bearishness.

Resistance- 1.3760,1.3800

Major support- 1.3660,1.36000