US dollar Index-
The US dollar index lost its shine after dismal US data. It hit a low of 103.99 and is currently trading around 104.07.
US ISM manufacturing PMI dropped in May to 48.70 vs .forecast of 49.60. the employment index improved to 51.10 from 48.6.
According to the CME Fed watch tool, the probability of a no-rate cut in June decreased to 99.9% from 99.10% a week ago.
Major resistance- 105/106.50
Major support- 104/103
EURUSD-
EURUSD jumped sharply after dismal US ISM data. It hit a high of 1.09160 yesterday and is currently trading around 1.09050.
The weak US ISM PMI has increased the chance of rate cut by Fed. Markets eye ECB monetary policy for further movement.
Major Economic data for the week
ECB Main refinancing rate (12:15 pm GMT)
Major resistance-1.0935,1.1000
Major support- 1.0848,1.0780
Yen-
The yen gained slightly after comments from BOJ Governor. “If underlying inflation moves as we project, we will adjust the degree of monetary support,” Bank of Japan (BoJ) Governor Kazuo Ueda said on Tuesday. 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 after easing Canada PMI data. The S&P global PMI dropped to 49.30 vs forecast of 49.40.Any break below 1.3600 confirms further bearishness.
Resistance- 1.3660,1.3735
Major support- 1.3600,1.3535
