FxWirePro: Forex Daily Update

The US dollar index showed a minor sell-off ahead of the US CPI. US headline CPI  is expected to show a minor jump to 3.2% from 3.1%. Annual core CPI is expected to decline from 4% to 3.8%. It hit a high of 102.64 and is currently trading around 102.22.

  According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 97.40% from 93.80% a week ago.

 The US 10-year yield 'showed a minor sell-off ahead of US CPI. The US 10 and 2-year spread narrowed to -34.40% from -51.90%.

Major resistance- 103/104

Major support- 102/101.60.

EURUSD-

EURUSD has been consolidated in a narrow range between 1.08767 and 1.09985 for the past week. French industrial production for November came at 0.50%, well above expectations. Markets await the ECB economic bulletin and Italian Industrial production.

Major resistance-1.1100,1.1070

Major support- 1.0880,1.0800

Yen-

The pair showed a minor decline ahead of the US CPI. Any close above 146 confirms further bullishness.

Major Resistance- 146,148

Major support- 144,143

Canadian Dollar

The pair has been trading weak for the past two days despite weak crude oil prices.

Major Resistance- 1.3380,1.3435

Major support- 1.3300, 1.3220