FxWirePro: Forex Daily Update

The US dollar index declined slightly due to profit booking. Fed member Loretta Mester said that the central bank would lower rates "later this year".  "It would be a mistake to move rates down too soon or too quickly without sufficient evidence that inflation is on a sustainable and timely path back to 2%. It hit a low of 104.06 and is currently trading around 104.13

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 78.50% from 58.80% a week ago.

 The US 10-year yield pared some of its gains despite strong US economic data.  The US 10 and 2-year spread narrowed to -30% from -53%.

Major resistance- 104.60/106

Major support- 103.60/102.90.

EURUSD-

EURUSD showed a minor pullback ahead of German data. German factory orders surged to 8.9% in Dec, compared to a forecast of -0.10%. Markets await German industrial production.

Major resistance-1.0780,1.0850

Major support- 1.072,1.06600

Yen-

The yen lost its shine due to a delay in rate cut. Any break above 150 confirms further bullishness.

Major Resistance- 150,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar gained momentum after upbeat Canada Ivey PMI data. It hits a 9-month high at 56.50 vs. a Forecast of 55.

Resistance- 1.3550,1.3660

Major support- 1.3435,1.3300