US dollar Index-
The US dollar index gained despite weak US economic data. It hit a low of 105.42 and is currently trading around 105.88.
US ISM manufacturing PMI declined for a third consecutive month to 48.50 in June compared to a forecast of 49.10. New orders rose to 49.40 from 45.40. Employment declined from 50.2 to 49.30.
Markets eye US Fed chairman Powell's speech (Tuesday 1:30 PM GMT) for further direction.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 0% from 60.50% a week ago.
Major resistance- 106.20/107
Major support- 105.20/104.45
EURUSD-
EURUSD pared some of its gains on Eurozone political uncertainty. It hit a high of 1.07764 and is currently trading around 1.07330.
German annual inflation declined to 2.2% in June compared to a forecast of 2.3%. HCOB Germany Manufacturing PMI at 43.5 vs .45.4 the previous month. 2-month low.
Major resistance-1.0800,1.0865
Major support- 1.0700,1.0660
Yen-
The pair holds above 161.50 on strong US treasury yields. Any close above 162 confirms further bullishness.
Major Resistance- 162,163
Major support- 159.80,15
Canadian Dollar
The pair gained sharply despite strong Oil prices. Any break above 1.3800 confirms further bullishness.
Resistance- 1.3800, 1.3900
Major support- 1.3670,1.3600


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