US dollar Index-
The US dollar index showed a minor pullback after ECB monetary policy. It hit a high of 104.28 and is currently trading at around 104.26.
ECB kept its interest rates on hold at 3.75% as expected. Core inflation remains elevated at 2.9%, above the ECB forecast preventing the ECB from rate cut.
The number of people who have filed for unemployment benefits rose by 20000 last week to 243000 vs. an Estimate of 229000.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 91.70% from 85.10% a week ago.
Major resistance- 105/106.20
Major support- 103.60/103
US economic data for the day
EURUSD-
EURUSD pared some of its gains on risk aversion. It hit a low of 1.08862 and is currently trading around 1.08885.
Markets are anticipating two rate cuts in September and Dec by the ECB this year.
Major resistance-1.0950,1.100
Major support- 1.0860,1.0750
Yen-
The yen was one of the best performers this week as the market suspects Japanese government intervention. Any close below 155.35 confirms further bearishness.
Major Resistance- 158,160
Major support- 155,154
Canadian Dollar
The Canadian dollar declined slightly on easing crude oil prices. Market eyes Canadian retail sales data. Any break above 1.3720 confirms further bullishness.
Resistance- 1.3725, 1.3765
Major support- 1.3660,1.3600


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