US dollar Index-
The US dollar index pared most of its gains on dismal inflation data. It hit a low of 104.07 and is currently trading at around 104.48.
US CPI declined to 3% in June YoY, below market expectations of 3%. On a monthly basis, CPI dropped to -0.10% compared to a forecast of 0.10%.
Markets eye US PPI data for further direction.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 86.40% from 68.40% a week ago.
Major resistance- 106.20/107
Major support- 105.20/104.45
EURUSD-
EURUSD showed a nice jump after the US CPI data. It hit a high of 1.09000 and is currently trading around 1.08697.
German CPI came at 2.2% in June, down from 2.4% in May.
Major resistance-1.0865,1.0900
Major support- 1.0760,1.0700
Yen-
The pair traded weak on the board based on US dollar weakness and intervention fear. Any close below 159 confirms further bearishness.
Major Resistance- 160,161
Major support- 159,158
Canadian Dollar
The Canadian dollar gained on strong Crude oil prices. Any break below 1.3590 confirms further bearishness.
Resistance- 1.3660, 1.3725
Major support- 1.3590,1.3535


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