FxWirePro: Forex Daily Update

US Dollar Index

• Current Status: The US dollar index pared its gains despite strong US inflation data. It hit a low of 104.95 yesterday and is currently trading around 104.97.
• Recent Economic Data:
  • US PPI: Rose 0.50% m/m in April, above the estimate of 0.30%.
  • Annual Producer Price Index: Increased by 2.2% over the last year, the highest PPI reading since April 2023.
  • Core PPI: Excluding food and energy costs, also rose by 0.50% vs. an estimate of 0.20%.
• CME Fed Watch Tool: The probability of a no-rate cut in June increased to 96.7% from 91.3% a week ago.
• Technical Levels:
  • Resistance: 105.60 / 106.50
  • Support: 104.50 / 103.80

Major Economic Data for the Week

• May 15th, 2024:
  • US CPI and Retail Sales (12:30 pm GMT)
  • Euro Flash GDP (9 am GMT)

EUR/USD

• Current Status: EUR/USD gained momentum after upbeat German ZEW sentiment. It hit a high of 1.08278 and is currently trading around 1.08234.
• Technical Levels:
  • Resistance: 1.08650 / 1.0900
  • Support: 1.0760 / 1.0700

USD/JPY

• Current Status: The pair consolidated in a narrow range ahead of the US CPI data. Any break above 157 confirms further bullishness.
• Technical Levels:
  • Resistance: 157 / 158
  • Support: 155 / 153.40

USD/CAD

• Current Status: The Canadian dollar trades higher despite weak crude oil prices. Any break below 1.3600 confirms further bearishness.
• Technical Levels:
  • Resistance: 1.3700 / 1.3765
  • Support: 1.3600 / 1.3535