FxWirePro- Forex Daily Update

 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