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
