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 cuts.

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 increased  to 67% from 56.30% a week ago.

Major resistance- 106.20/107

Major support- 105.20/104.45

EURUSD-

EURUSD gained slightly after weak US economic data.  It hit a high of 1.08168 and is currently trading around 1.07851.

German final services PMI came at 53.50 in June compared to a forecast of 53.50.

Major resistance-1.0820,1.0865

Major support- 1.0760,1.0660

Yen-

The pair showed a minor sell-off on an easing US treasury yield.  Any close above 162 confirms further bullishness.

Major Resistance- 162,163

Major support- 159.80,15

Canadian Dollar

The pair trades weak on strong oil prices. Any break above 1.3600 confirms further bearishness.

Resistance- 1.3765, 1.3800

Major support- 1.3600,1.3535