FxWirePro: Forex Daily Update

The US dollar index trades higher ahead of US Fed policy. It hit a high of 106.404 and is currently trading around 106.39.

The central bank is expected to keep rates unchanged within their current range of 5.25%-5.50%. All eyes will be on the Fed Chairman's interest rate outlook.

According to the CME Fed watch tool, the probability of a no-rate cut in May increased to 98.40% from 95.90% a week ago.

The Chicago business activity index dropped to 37.90 in Apr, the lowest level in 17 years, compared to a forecast of 44.9.

Major resistance- 106.50/107

Major support- 105.35/104.45

Economic data for the day

Apr 30th, 2024, Chicago PMI (1:45 pm GMT)

US CB consumer confidence (2 pm GMT)

 S&P/CS Composite-20 HPI y/y (1 pm GMT)

EURUSD-

EURUSD showed a minor decline ahead of the Fed rate decision. Eurozone CPI came unchanged at 2.4% in line with expectations. The CPI core declined to 2.7% YoY from 2.9%.

Major resistance-1.0760,1.0800

Major support- 1.0660,1.0600

Yen-

The pair showed a minor pullback on the policy divergence between the Fed and BOJ. Any break below 158 confirms major bullishness.

Major Resistance- 161,163

Major support- 154.50,153.50

Canadian Dollar

The Canadian dollar lost its shine on the weak  Canadian GDP. Any break above 1.3800 confirms further bullishness.

Resistance- 1.3800,1.3865

Major support- 1.3750,1.3680