FxWirePro: Forex Daily Update

The US dollar index trades flat ahead of US CPI data. It hit a low of 103.88 yesterday and is currently trading around 104.147.

The economists predict a 3.7% y/y jump in core CPI from 3.8% the previous month. Core CPI is expected to come in at 0.30% m/m vs. 0.40% in February.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in  June decreased to 50.8% from  61.5% a week ago.

Major resistance- 105.20/106

Major support- 104.40/103.80

EURUSD-

EURUSD holds above 1.08500 ahead of US CPI and ECB policy. Any jump in US inflation will delay the early rate cut by the Fed.

Major resistance-1.0880,1.0935

Major support- 1.0800,1.0720

Yen-

The pair declined slightly after the BOJ Governor said that further rate hikes would be data-dependent. Any break above 152 confirms minor bullishness.

Major Resistance- 152,153

Major support- 150,149

Canadian Dollar

USDCAD trades in a narrow range ahead of BOC monetary policy.

Resistance- 1.3660,1.37000

Major support- 1.3550,1.3500