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FxWirePro: Forex Daily Update 

The US dollar index gained momentum despite weak US data. The New York Federal Reserve's Empire State declined 29.2 points to 43.7, the lowest level since May 2020. It hit a high of 103.44 and is currently trading around 103.42.

   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 4% due to geo-political tension. The US 10 and 2-year spread narrowed to -17.6% from -51.90%.

Major resistance- 103.50/105

Major support- 102/101.60.


EURUSD- 
 
EURUSD trades weak despite upbeat German data. German ZEW economic sentiment surged to 15.20 in Jan, compared to a forecast of  12. Major eurozone economic indicators - Euro Final CPI y/y.

Major resistance-1.090,1.0965

Major support- 1.0860,1.0800

Yen- 

The pair trades higher due to policy divergence between the US Fed and BOJ. Any close above 148 confirms further bullishness.

Major Resistance- 148,150

Major support- 146.50,144.

Canadian Dollar 
    
The Canadian dollar lost its shine despite strong CPI data. Canada's CPI jumped to 3.4% on a year-over-year basis in Dec, up from 3.1%.

Major Resistance- 1.350,1.3570

Major support- 1.3480, 1.3435


 

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