FxWirePro: Forex Daily Update

The US dollar index pared most of its gains after the dismal US jobs data. It hit a low of 104.52 and is currently trading around 105.18.

Non-farm payrolls in the US dropped to 175000 in Apr from the previous month's 315000, below the forecast of 243000. The unemployment rate surged higher to  3.9% from 3.8%, while average hourly earnings declined 3.9%  YoY from 4.1%.

 The central bank has kept rates unchanged within their current range of 5.25%-5.50%. It has added that it does not expect it would be appropriate to reduce the target range until it has gained greater confidence that inflation is moving towards 2%.

According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 91.6% from 88.90% a week ago.

Major resistance- 106.50/107

Major support- 105.35/104.45

Economic data for the day

May 10th, 2024, Prelim UoM consumer sentiment

EURUSD-

The EURUSD showed a minor sell-off despite the weak US jobs data. Markets eye German and Eurozone final manufacturing PMI for further direction.

Major resistance-1.0760,1.0800

Major support- 1.0660,1.0600

Yen-

The pair showed a minor pullback after a massive sell-off due to Japanese government forex intervention. Any break above 155 confirms major bullishness.

Major Resistance- 155,157,

Major support- 153.45,152.

Canadian Dollar

The Canadian dollar showed a minor sell-off due to weak crude oil prices. Any break above 1.3700 confirms further bullishness.

Resistance- 1.3700,1.3800

Major support- 1.3650,1.3600