FxWirePro: Forex Daily Update

The US dollar index showed a minor sell-off after weak US PPI. It hit a low of 105.03 yesterday and is currently trading around 105.359.

US PPI   rose 0.20% m/m in Mar, compared to a forecast of 0.30%. The annual PPI surged to 2.1% from 1.6% yoy, the highest since Sep 2023.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in  June decreased to 23.80% from  59.10% a week ago.

Major resistance- 105.20/106

Major support- 104.40/103.80

EURUSD-

EURUSD lost its shine after the dovish ECB monetary policy. The ECB kept its rates unchanged at 4% as expected. The central bank said that "it would be appropriate to reduce the current level of monetary policy restrictions" if inflation continues to move toward its 2% target.

Major resistance-1.0760,1.0800

Major support- 1.0700,1.0660

Yen-

The pair holds above 153 on strong than expected US inflation. This delay in rate cut by the Fed supports the pair at lower levels. Any break above 153.50 confirms minor bullishness.

Major Resistance- 153.50,155

Major support- 152,150

Canadian Dollar

USDCAD hit a fresh multi-month high on policy divergence between the US fed and BOC. Any break above 1.3730 confirms further bullishness.

Resistance- 1.3730,1.3800

Major support- 1.3660,1.3600