FxWirePro: Forex Daily Update 

The US dollar index gained momentum despite weak US PPI data. US PPI fell 0.10% in Dec, compared to a forecast of 0.10%. Core PPI came unchanged at  0% vs the forecast of 0.20%. It hit a high of 102.93 and is currently trading around 102.905.

  According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 95.3% from 94.80% a week ago.

 The US 10-year yield 'gained more than 2% on strong CPI data. The US 10 and 2-year spread narrowed to -20% from -51.90%.

Major resistance- 103/104

Major support- 102/101.60.

EURUSD- 
 
EURUSD pared some of its gains due to Middle East Geo political tension. Hawkish comments from ECB's Holzmann and Nagel will prevent the Euro from further sell-off. Major eurozone economic indicators - German ZEW economic sentiment and German CPI.

Major resistance-1.1100,1.1070

Major support- 1.0880,1.0800

Yen- 

The pair trades higher for the second consecutive day on board-based US dollar buying. Any close above 146.50 confirms further bullishness.

Major Resistance- 146.50,148

Major support- 144,143

Canadian Dollar 
    
The Canadian dollar lost its shine despite strong manufacturing and sales. Canadian manufacturing sales gained 1.2% in Nov vs. Forecast 1.1%.

Major Resistance- 1.350,1.3570

Major support- 1.3400, 1.3340