FxWirePro: Forex Daily Update

The US dollar index pared some of its gains on weak US retail sales. It declined by -0.80% in Jan compared to a forecast of -0.20%. It hit a low of 104.18 yesterday and is currently trading around 104.44.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 89.5% from 81% a week ago.

 The US 10-year yields pared some of its gains after weak US economic data. The US 10 and 2-year spread narrowed to -34.50% from -53%.

Major resistance- 105/106

Major support- 104.50/103.80.

EURUSD-

EURUSD showed a minor pullback after two weeks of bearish trend. The Empire State manufacturing index rose to -2.4 in Jan vs. the Forecast of -13.70, from -43.7 the previous month. The number of people who have filed for unemployment benefits rose by 212000 in the week ended Feb 10 compared to a forecast of 219K.

Major resistance-1.0760,1.0800

Major support- 1.070,1.06600

Yen-

The pair consolidating ahead of US PPI data. Any break above 152 confirms further bullishness.

Major Resistance- 151,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar showed a minor uptick in strong Crude oil prices. Canada's manufacturing sales fell by 0.70% in Dec, below the estimate of -0.50%.

Resistance- 1.3600,1.3660

Major support- 1.3480,1.3435