FxWirePro-Forex Daily Update

 US dollar Index-

The US dollar index is consolidating in a narrow range between 106.13 and 105.42 for the past week. It hit a high of 106.05 and is currently trading around 105.71.

Fed chairman said in an ECB forum that “The last reading and the one before it, to a lesser extent, suggest that we are getting back on the disinflationary path.” He also cautioned against premature rate cuts and never mentioned any timeline for rate cut.

Markets eye FOMC meeting minutes, US ADP employment, and ISM services PMI data for further direction.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 59.90% from 56.30% a week ago.

Major resistance- 106.20/107

Major support- 105.20/104.45

EURUSD-

EURUSD pared some of its gains as inflation cooled down.  It hit a low of 1.07099 and is currently trading around 1.07393.

Eurozone annual inflation cools down to 2.5% YoY in June 2024 from 2.6%, in line with the estimate.

Major resistance-1.0800,1.0865

Major support- 1.0700,1.0660

Yen-

The pair holds above 161.50 ahead of the FOMC meeting minutes.  Any close above 162 confirms further bullishness.

Major Resistance- 162,163

Major support- 159.80,15

Canadian Dollar

The pair lost its shine on strong oil prices. The Canadian manufacturing PMN was unchanged at 49.30. Any break above 1.3800 confirms further bullishness.

Resistance- 1.3765, 1.3800

Major support- 1.3660,1.3600