US dollar Index-
The US dollar index gained slightly ahead of US CPI and US Fed policy. It hit a high of 105.49 yesterday and is currently trading around 105.29.
CPI Market expectations
Headline CPI expected to rose 3.4% YoY in May from 3.4% previous month and 0.10% m/m vs. 0.30% in Apr.
Core CPI - 3.50% YoY vs 3.4% in Apr. On the monthly basis it is expected to decline 0.30%.
Any hawkish rate pause will push the prices further high.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 48.30% from 57.20% a week ago.
Major resistance- 106/107
Major support- 104.70/103.80
EURUSD-
EURUSD is trasing side ways ahead of US CPI and Fed monetary policy. It hit a low of 1.07194 and is currently trading around 1.07372.
The politcial uncertainity in France puta pressure on Euro at higher levels.
Major resistance-1.0800,1.0900
Major support- 1.0720,1.0650
Yen-
The yen lost its shine on polviy divergence between US Fed and BOJ. Any break above 158 confirms further bullishness.
Major Resistance- 158,160
Major support- 156,154.50
Canadian Dollar
The Canadian dollar gained momentum ahead of BOC Gov Macklem speech.Any break above 1.3800 confirms further bullishness.
Resistance- 1.3800, 1.3900
Major support- 1.3700,1.3600


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