FxWirePro: Forex Daily Update

The US dollar index trades flat amid dovish comments, from Fed officials. Boston Fed president Susan Collins said "I will need more, additional evidence" to confirm that inflation is consistently trending towards the Fed's 2% goal, She said the Fed is likely to cut rates by 75 bpbs this year. It hit a low of 103.94 and is currently trading around 104.18.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 83.50% from 62% a week ago.

 The US 10-year yields recovered after upbeat 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 has been consolidating in a narrow range between 1.07200 and 1.07885 for the past three days. Investors eye German CPI for further movement. The number of people who have filed for unemployment benefits decreased by 9000 to 218000 in the week ended Feb 3rd, 2024, compared to a forecast of 22000.

Major resistance-1.0800,1.0850

Major support- 1.072,1.06600

Yen-

The pair gained momentum on dovish comments from the BOJ Deputy Governor. Any break above 150 confirms further bullishness.

Major Resistance- 150,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar trades higher ahead of Canadian employment data.

Resistance- 1.3550,1.3660

Major support- 1.3435,1.3300