FxWirePro: Forex Daily Update

FxWirePro: Forex Daily Update 

The US dollar index pared some of its gains despite positive US data.  Philly fed manufacturing declined to -10.6 in Jan, compared to a forecast of -7.0. Building permits rose to 1.50 M in Dec 1.9% higher than the previous month. Housing starts came in at a 1.46 million annual rate in Dec, declining from the previous month's 1.53 million. It hit a low of 103.31 and is currently trading around 103.36.

   According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 97.40% from 95.90% a week ago.

 The US 10-year yield 'gained more than 6% on strong US economic data. The US 10 and 2-year spread narrowed to -20.7% from -53%.

Major resistance- 103.75/105

Major support- 102/101.60.

EURUSD- 
 
EURUSD trades flat ahead of German PPI data. Fed official R.Bostic (Atlanta) cautioned to avoid rate cut early.

Major resistance-1.090,1.0965

Major support- 1.0860,1.0800

Yen- 

The pair gained momentum on board- based US dollar buying. Any close above 148.60 confirms further bullishness.

Major Resistance- 148.60,150

Major support- 147.70,146.40

Canadian Dollar 
    
The pair trading flat ahead of Canadian retail sales.

Resistance- 1.3570,1.3645

Major support- 1.3480, 1.3435

Economic calendar 

Canada retail sales  (1:30 pm GMT)

Prelim UoM consumer sentiment (3:00 pm GMT)

Existing Home Sales (3:00 pm GMT)