FxWirePro: Forex Daily Update

The US dollar index surged sharply after the weak CPI data.  US CPI rose 0.30%  m/m in Jan, compared to a forecast of 0.20%. The annualized CPI slows down from 3.1% to 3.4% yoy, above expectations of 2.9% yoy. It hit a high of 104.96 yesterday and is currently trading around 104.79.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 91% from 81% a week ago.

 The US 10-year yields jumped more than 3% as the chance of rate cut hopes decreased. The US 10 and 2-year spread narrowed to -31.7% from -53%.

Major resistance- 105/106

Major support- 104.50/103.80.

EURUSD-

EURUSD trades weak after the weak US CPI data. German ZEW economic sentiment surged to 19.90 in Feb vs .forecast of  17.50.

 Major Eurozone economic data -

Feb 14th 2024, Euro flash GDP q/q (10 am GMT)

Major resistance-1.0760,1.0800

Major support- 1.070,1.06600

Yen-

The pair hits a multi-week high on policy divergence between the US Fed and BOJ. Any close above 150 confirms further bullishness.

Major Resistance- 150,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar pared some of its gains on the board-based US dollar buying.

Resistance- 1.3600,1.3660

Major support- 1.3535,1.3480