FxWirePro: Forex Daily Update

FxWirePro: Forex Daily Update

The US dollar index pared some of its gains after Fed monetary policy. It hit a low of 105.43 and is currently trading around 105.73.

The central bank has kept rates unchanged within their current range of 5.25%-5.50%. The US Central Bank added that it does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving towards 2%.

According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 91.10% from 83.50% a week ago.

US ISM manufacturing index declined to 49.20 in Apr vs. Estimate of 50.

Major resistance- 106.50/107

Major support- 105.35/104.45

Economic data for the day

May 2nd, 2024, US initial jobless claims (12:30 pm GMT)

EURUSD-

EURUSD gained momentum after being less hawkish than anticipated.

Markets eye German and Eurozone final manufacturing PMI for further direction.

Major resistance-1.0760,1.0800

Major support- 1.0660,1.0600

Yen-

The pair lost its shine after the Japanese government's forex intervention. Any break below 154.95 confirms major bearishness.

Major Resistance- 161,163

Major support- 154.50,153.50

Canadian Dollar

The Canadian dollar gained momentum on policy divergence between the Fed and BOC. Any break below 1.3700 confirms further bearishness.

Resistance- 1.3800,1.3865

Major support- 1.3700,1.3650