FxWirePro: Forex Daily Update

The US dollar index gained strength after strong PMI data.It hit a high of 105.119 and is currently trading around 105.09.

The US S&P Global Composite flash manufacturing PMI rose to 50.9 in May, compared to a forecast of 50. While the flash services PMI surged to 54.8 Vs. Estimate of 51.20.

The number of people who have filed for unemployment benefits fell by 8000 in the week ended May 18th to 215000 vs. the Forecast of 220000.

According to the CME Fed watch tool, the probability of a no-rate cut in June decreased to 98.70% from 91.1% a week ago.

Major resistance- 105/106.50

Major support- 104/103

Economic data for the day

US Durable goods orders  (12:30 pm GMT)

EURUSD-

EURUSD trades weak despite strong PMI data. It hit a low of 1.08047 yesterday and is currently trading around 1.08091.

The latest German HCOB flash services PMI surges to 53.90 compared to a forecast of 53.50. The policy divergence between the Fed and the ECB puts pressure on the pair at higher levels.

Economic data for the day

German final GDP (6 am GMT)

Major resistance-1.0900,1.100

Major support- 1.0800,1.0720

Yen-

The pair holds above 157 after weak Japan’s inflation data. Any break above 158 confirms further bullishness. Japan’s national core CPI came at 2.2% y/y in Apr, from 2.6% previous month.

Major Resistance- 158,160

Major support- 156,154.50

Canadian Dollar

The Canadian dollar lost momentum ahead of Canadian retail sales . Any break above 1.3750 confirms further bullishness.

Resistance- 1.3700,1.3765

Major support- 1.3580,1.3535