FxWirePro- Forex Daily Update

 US dollar Index-

The US dollar index traded flat after more hawkish comments from Fed officials. It hit a low of 105.12 and is currently trading around 105.28.

  Cleveland Federal Reserve President Loretta Mester said that it is good to consider a "longer run of good-looking inflation data" before a rate cut. Minneapolis Fed President Neel Kashkari preferred to wait till December to cut rates. Philadelphia Federal Reserve President Patrick Harker wants to keep rates on hold for a longer period.  

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 57.90% from 59.6% a week ago.

US economic data for the day

Philly Fed manufacturing Index and Building permits (12:30 pm GMT)

Major resistance- 105.50/107

Major support- 103.80/103

EURUSD-

EURUSD consolidating in a narrow range ahead of Eurozone PMI data. It hit a high of 1.07535  and is currently trading around 1.07420.

The policy divergence between the Fed and ECB puts pressure on the Euro at a higher level.

Major resistance-1.0800,1.0865

Major support- 1.0650,1.0600

Yen-

The pair holds above 158 despite weak US treasury yields. Any close above 158 confirms further bullishness.

Major Resistance- 158.25,160

Major support- 156,154.50

Canadian Dollar

The Canadian dollar gained momentum as crude oil prices surged more than $3 this week. Any break above 1.3800 confirms further bullishness.

Resistance- 1.3800, 1.3900

Major support- 1.3700,1.3600