The US dollar index trades flat ahead of US CPI data. It hit a low of 103.89 yesterday and is currently trading around 104.23.
Fed member Bowman said that the present Fed policy rate is in the right place. "It's too soon to project when, how much the Fed will cut rates." Richmond Fed President Thomas Barkin said, "We (Fed) are closing in on the inflation target, but we're not yet there." US headline CPI is expected to fall to 2.9% y/y.Core CPI is expected at 3.7% y/y vs 3.9% previous month.
According to the CME Fed watch tool, the probability of a no-rate cut in Mar increased to 86.50% from 85% a week ago.
The US 10-year yields holds above 4.15% ahead of US inflation data. The US 10 and 2-year spread narrowed to -29.5% from -53%.
Major resistance- 104.60/106
Major support- 103.60/102.90.
EURUSD-
EURUSD trades weak ahead of German ZEW economic sentiment. Major Eurozone economic data -
Feb 13th German ZEW economic (10 am GMT)
Feb 13th 2024, Euro flash GDP q/q (10 am GMT)
Major resistance-1.0800,1.0850
Major support- 1.072,1.06600
Yen-
The pair hits a multi-week high on board-based US dollar buying. Any break above 150 confirms further bullishness.
Major Resistance- 150,152
Major support- 148,146.50
Canadian Dollar
The Canadian dollar showing momentum as crude oil prices hold steady above $75.
Resistance- 1.3550,1.3660
Major support- 1.3435,1.3300


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