FxWirePro: Forex Daily Update

The US dollar index pared most of its gains after the dismal US jobs data. It hit a low of 105.19 yesterday and is currently trading around 105.304.

US initial jobless claims rose 22000 to 231k in the week ending May 4th, compared to a forecast of 210k. The weak US jobs renewed the chance of a rate cut by the Fed in June.

Hawkish remarks from the Presidents of the Federal Reserve in  Richmond and Minneapolis supported the US dollar prices at lower levels.

According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 91.5% from 85.6% a week ago.

Major resistance- 105.60/106.50

Major support- 104.50/103.80

EURUSD-

EURUSD gained above 1.07500 after the weak US jobs data. The policy divergence between the ECB and Fed putting pressure on the Euro at higher levels.

Federal Reserve Bank of San Francisco President Mary Daly said “We are restrictive, but it might take more time to just bring inflation down”.

Major resistance-1.0820,1.0865

Major support- 1.0720,1.0660

Yen-

The yen continues to underperform this week on board-based US dollar buying.  Japan’s verbal intervention and hawkish comments from the Japanese  Finance minister are preventing the yen from further downside. Any break above 156 confirms further bullishness.

Major Resistance- 156,157

Major support- 153.40,151.85

Canadian Dollar

The Canadian dollar gained momentum on strong crude oil prices. Any break below 1.3600 confirms further bearishness.

Resistance- 1.3760,1.3800

Major support- 1.3660,1.36000