FxWirePro- Forex Daily Update

 US dollar Index-

The US dollar index gained sharply after upbeat US Non Farm Payroll data.It hit a low of  104.04 yesterday and is currently trading around 104.10..

US economy added  272000  jobs in May, above the forecast of  182000. The unemployment  rate ticked up to 4% from 3.9%. Average wages rose to 4.1% Yoy vs 3.9% YoY. The US ISM manufacturing PMI contracts in May, while the services PMI gained above 50.

Markets anticipate a hawkish Fed rate pause due to strong US inflation and mixed US economic data.

 According to the CME Fed watch tool, the probability of a no-rate cut in June decreased to 98.4% from 98.90% a week ago.

Major US economic data for the week

June 12th, CPI m/m (12:30 pm GMT)

                  Federal funds rate (6 pm GMT)

 June 13th 2024, US PPI (12:30 pm GMT)

Major resistance- 105/106.50

Major support- 104/103

EURUSD-

EURUSD lost its shine last week after ECB monetary policy. It hit a low of 1.07664  and is currently trading around 1.07722. 

ECB cuts rates by 25 bpbs to 3.75%  for the first time since 2019. "The Governing Council will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction," the ECB said in a statement. The policy divergence between US Fed and ECB puts pressure on pair at higher levels.

Major resistance-1.0835,1.0900

Major support- 1.0760,1.0650

Yen-

The yen lost its momentum after strong upbeat US jobs data. Any break above 158 confirms further bullishness.

Major Resistance- 158,160

Major support- 156,154.50

Canadian Dollar

The pair trades above 1.3750 despite strong Canadian jobs data. The Canadian economy has added 26700 jobs in May above forecast of 248000. Any break above 1.3770 confirms further bullishness.

Resistance- 1.3800,1.3900

Major support- 1.3600,1.3535