FxWirePro: Forex Daily Update

The US dollar index trades weak despite strong US economic data. It hit a low of  104.33 and is currently trading around 104.713.

Minneapolis Fed President Neel Kashkari said that  “many more months of positive inflation data” before the rate cut.

US Conference Board Consumer Confidence surged to 102.0 in May from 97.50, well above expectations of 96.1.

According to the CME Fed watch tool, the probability of a no-rate cut in June decreased to 99.10% from 96.50% a week ago.

Major resistance- 105/106.50

Major support- 104/103

Economic data for the day

May 30 th 2024, US Richmond Manufacturing Index  (2:00 pm GMT)

EURUSD-

EURUSD pared some of its gains by hawkish Fed remarks.It hit a low of 1.08440 and is currently trading around 1.08476.

Major Economic data for the day-

German Prelim CPI m/m (All day)

Major resistance-1.0900,1.100

Major support- 1.0800,1.0720

Yen-

The pair hits a multi-month high amid dovish commentary from BOJ’s official Adachi. Any break above 158 confirms further bullishness. 

Major Resistance- 158,160

Major support- 156,154.50

Canadian Dollar

The Canadian dollar showed a minor sell-off despite strong crude oil prices. Canada's Industrial Product Price Index (IPPI), rose 1.5% month over month in April 2024 and increased 1.4% year over year. Any break below 1.3600 confirms further bearishness.

Resistance- 1.3700,1.3765

Major support- 1.3580,1.3535