FxWirePro- Forex Daily Update

 US dollar Index-

The US dollar index rebounded more than 50 pip amid weak US PPI data. It hit a high of  105.28 yesterday and is currently trading around 105.245.

The Producer Price Index in the US rose 2.2% YoY in May, below the estimate of 2.5%.US PPI for final demand declined -0.20%m/m in May, below expectations of 0.20%. The number of people who have filed for unemployment benefits rose by 13000 to 242k in the week ending June 8th, above expectations of 242K.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 59% from 55.40% a week ago.

The US 10-year yield slipped more than 4% in the past two days on easing US CPI and PPI.

Major resistance- 105.50/107

Major support- 103.80/103

EURUSD-

EURUSD is trading weak amid Europe's political uncertainty and further rate-cut hopes. It hit a low of 1.07316  and is currently trading around 1.07414.

ECB Governing Council member Bostjan Vasle said that the ECB would cut rates further if economic data supports it. Vasile said, "If the baseline scenario is realized and the data are favorable, then we can probably expect further rate cuts already this year, and then also next year."

Major resistance-1.0800,1.0865

Major support- 1.0720,1.0650

Yen-

The yen continues to trade weak ahead of BOJ's monetary policy. The central bank is expected to keep rates unchanged. Markets speculate that BOJ may taper its monthly bond-buying program.  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 dovish comments from BOC Gov Macklem. Any break above 1.3800 confirms further bullishness.

Resistance- 1.3800, 1.3900

Major support- 1.3700,1.3600