FxWirePro- Forex Daily Update

 US dollar Index-

The US dollar index lost its shine after weak inflation data. It hit a low of  104.27 yesterday and is currently trading around 104.79.

US Core CPI came at 0.20% in May below estimate of 0.30%.The annual core CPI rose 3.4%  below  the analyst estimate 3.5%.  Over the last 12 months, CPI increased 3.3% below forecast of 3.4%.

Fed left interest r ates unchanged at 5.25-5.50% as expected. Fed dot plot shows that the central bank will cut rstes by 25 bpbs in 2024 and another 100 bpbs in 2025. In the new dot plot, 4 saw no rate cut in 2024, 7 saw one rate cut and 8 saw two rate cuts.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep  increased to 56.70% from 46.80% a day ago.

Major resistance- 105.50/107

Major support- 103.80/103

EURUSD-

EURUSD pared some of its gains after hawkish rate pause by Fed. It hit a low of 1.08522  and is currently trading around 1.08042. 

The politcial uncertainity in France due to early election called by French President Macron.

German CPI  came at 0.10% in May, in line with estimate.

Major resistance-1.0860,1.0935

Major support- 1.0750,1.0660

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 pared its gains after hawkish tilt by Fed.Any break above 1.3800 confirms further bullishness.

Resistance- 1.3800, 1.3900

Major support- 1.3700,1.3600