FxWirePro- Forex Daily Update

 US dollar Index-

The US dollar index gained moderately after a massive sell-off.It hit a high of 104.36 and is currently trading at around 104.337.

“The implication of that is that if you wait until inflation gets all the way down to 2%, you’ve probably waited too long, because the tightening that you’re doing, or the level of tightness that you have, is still having effects which will probably drive inflation below 2%,”

US Empire State manufacturing index declines to -6.60 in July vs. the Forecast of -5.50.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 87.6% from 70.2% a week ago.

Major resistance- 105/106.20

Major support- 104/103

US economic data for the day

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

EURUSD-

EURUSD showed a minor sell-off ahead of US retail sales. It hit a low of 1.08884 and is currently trading around 1.0888.

Market eyes Federal Reserve’s Adriana Kugler speech today for further direction.

Major resistance-1.0920,1.100

Major support- 1.0860,1.0750

Yen-

The yen lost its shine despite the easing of the US treasury yield. Any close above 159.50 confirms further bullishness.

Major Resistance- 160,162

Major support- 157,155.70

Canadian Dollar

The Canadian dollar trades weak ahead of Canadian CPI data. Any break above 1.3700 confirms further bullishness.

Resistance- 1.3660, 1.3725

Major support- 1.3590,1.3535