FxWirePro- Forex Daily Update

 US dollar Index-

The US dollar index lost its shine on rate cut hopes. It hit a low of 104.04 and is currently trading at around 104.23.

The headline CPI came at -0.10% compared to a forecast of 0.10%, while core CPI surged by 0.10% m/m vs. Forecast of 0.20%. US PPI rose to 2.6% in June compared to an estimated 2.3%.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 88.10% from 72.2% a week ago.

Major resistance- 105/106.20

Major support- 104/103

US economic data this week

July 15th, 2024,  US Empire State Manufacturing Index (12:30 pm GMT)

July 16th, 2024, Core retail sales m/m (12:30 pm GMT)

July 18th, 2024, Unemployment claims and Philly Fed manufacturing index (12:30 pm GMT).

EURUSD-

EURUSD showed a nice jump on upbeat market sentiment. It hit a high of 1.09133 and is currently trading around 1.08925.

The policy divergence between the US Fed and ECB supports the pair at lower levels. Market eyes on the ECB policy meeting and press conference on Thursday for further direction.

Major resistance-1.0920,1.100

Major support- 1.0860,1.0750

Yen-

The yen gained momentum on a weak US dollar and an easing US treasury yield. Any close below 157 confirms further bearishness.

Major Resistance- 158.50,160

Major support- 157,155.70

Canadian Dollar

The Canadian dollar trades weak despite board-based US dollar weakness. Any break below 1.3580 confirms further bearishness.

Resistance- 1.3660, 1.3725

Major support- 1.3590,1.3535