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FxWirePro- Forex Daily Update

 US dollar Index-

The US dollar index gained slightly ahead of US CPI and US Fed policy. It hit a high  of  105.49 yesterday and is currently trading around 105.29.

CPI Market expectations

Headline CPI expected to rose 3.4% YoY in May from 3.4% previous month and 0.10% m/m vs. 0.30%  in Apr.

Core CPI - 3.50%  YoY vs 3.4% in Apr. On the monthly basis it is expected to decline 0.30%.

Any hawkish rate pause will push the prices further high.

 

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep  decreased to 48.30% from 57.20% a week ago.

Major resistance- 106/107

Major support- 104.70/103.80

                  

EURUSD-

EURUSD is trasing side ways ahead of US CPI and Fed monetary policy. It hit a low of 1.07194  and is currently trading around 1.07372. 

The politcial uncertainity in France puta pressure on Euro at higher levels.

Major resistance-1.0800,1.0900

Major support- 1.0720,1.0650

Yen-

The yen lost its shine on polviy divergence between US Fed and BOJ. Any break above 158 confirms further bullishness.

Major Resistance- 158,160

Major support- 156,154.50

 

Canadian Dollar

The Canadian dollar gained momentum ahead of BOC Gov Macklem speech.Any break above 1.3800 confirms further bullishness.

Resistance- 1.3800, 1.3900

Major support- 1.3700,1.3600

 

 

 

 

 

 

 

 

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