The US dollar index lost its shine after the US CPI. It hit a low of 104.95 yesterday and is currently trading around 104.97.
The Consumer Price Index (CPI) rose 0.30% m/m in Apr from 0.40% the previous month, in line with the estimate. The annual CPI dropped by 0.10% points to 3.4%. This has reignited the chance of a rate cut by September.
According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 97.3% from 91.3% a week ago.
Major resistance- 105.60/106.50
Major support- 104.50/103.80
Major economic data for the week
May 16th, 2024, US jobless claims, Building permits, Philly Fed Manufacturing Index (12:30 pm GMT)
EURUSD-
EURUSD gained momentum after dismal US retail sales. It came flat in Apr, below the estimate of 0.40%. Core retail sales rose 0.20% in Apr, in line with the estimate. It hit a high of 1.08949 when writing and is currently trading around 1.08861.
May 16th, 2024, ECB Financial Stability Review (8 am GMT)
Major resistance-1.0900,1.100
Major support- 1.0800,1.0720
Yen-
The pair declined sharply after soft US inflation data. Any break below 153.40 confirms further bearishness.
Major Resistance- 155,157
Major support- 153.40,152.
Canadian Dollar
The Canadian dollar shines despite weak Canadian manufacturing sales.It fell 2.1% in Apr, below the estimate of -2.4%. Any break below 1.3600 confirms further bearishness.
Resistance- 1.3660,1.3765
Major support- 1.3600,1.3535
