FxWirePro: Forex Daily Update

The US dollar index is consolidating after a nice pullback. The index gained momentum. after upbeat US CPI. The annualized CPI came in at 3.1% above expectations of 2.9%. It hit a high of 104.63 yesterday and is currently trading around 104.70.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 89.5% from 81% a week ago.

 The US 10-year yields pared some of its gains due to profit booking. The US 10 and 2-year spread narrowed to -32.8% from -53%.

Major resistance- 105/106

Major support- 104.50/103.80.

EURUSD-

EURUSD halted its bearish trend on steady Eurozone GDP. It came unchanged at 0% for the fourth quarter, and annualized GDP shows a minor jump of 0.10%.

Major resistance-1.0760,1.0800

Major support- 1.070,1.06600

Yen-

The pair traded flat ahead of US retail sales data. Any break above 152 confirms further bullishness.

Major Resistance- 151,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar showed a minor uptick ahead of manufacturing sales. The sell-off in crude oil prices supports the Canadian dollar at lower levels.

Resistance- 1.3600,1.3660

Major support- 1.3530,1.3480