FxWirePro- Forex Daily Update

 US dollar Index-

The US dollar index pared some of its gains on soft PCE data. It hit a low of 105.54 and is currently trading around 105.61.

US core and headline Personal Consumption Expenditure (PCE) cools down to 2.6% YoY in May, down from 2.7% in Apr. The easing PCE increased the chance of a rate cut by the Fed in Sep.

Markets eye US ISM manufacturing PMI (Mon 2 pm GMT), Fed chairman Powell speech (Tuesday 1:30 PM GMT), US ADP employment (Wed,12:15 pm GMT), US ISM services PMI (2 pm GMT), FOMC meeting minutes (6 pm GMT), US NFP (12:30 pm GMT).

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 59.50% from 57% a week ago.

Major resistance- 106.20/107

Major support- 105.20/104.45

EURUSD-

EURUSD gained momentum after easing US core PCE. It hit a high of 1.07616 and is currently trading around 1.07543.

Major eurozone economic data this week

German final manufacturing PMI(Mon), Eurozone core CPI (Tuesday), German factory orders (Thursday).

Major resistance-1.0800,1.0865

Major support- 1.0700,1.0660

Yen-

The pair traded higher on policy divergence between the US Fed and BOJ.  Any close above 161.30 confirms further bullishness.

Major Resistance- 162,163

Major support- 159.80,15

Canadian Dollar

The pair showed a minor sell-off after a strong Canadian GDP. The economy expanded by 0.30% in April, per the estimate. Any break below 1.3600 confirms further bearishness.

Resistance- 1.3730, 1.3800

Major support- 1.3600,1.3535