FxWirePro: Forex Daily Update

The US dollar index showed minor weakness ahead of the FOMC meeting minutes. A strong US economy and hotter-than-expected inflation will force the Fed to delay early rate cuts. It hit a high of 104.41 yesterday and is currently trading around 103.99.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 91.50% from 91% a week ago.

 The US 10-year yields trade flat ahead of  FOMC meeting minutes. The US 10 and 2-year spread narrowed to -32% from -53%.

Major resistance- 105/106

Major support- 104.50/103.80.

EURUSD-

EURUSD  showed a minor pullback to 1.08387, its highest level since Feb 2nd, 2024.  Markets await Euro and German flash manufacturing PMI on Thursday and FOMC meeting minutes for further direction. Eurozone's current account surplus grew to 31.9 billion euros in Dec 2023 from 22 billion euros.

Major resistance-1.0850,1.0935

Major support- 1.0760,1.0700

Yen-

The yen gained momentum on board-based US  dollar selling. Any break below 149.50 confirms minor weakness.

Major Resistance- 151,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar lost its shine after a weak Canadian CPI. This will increase the chance of a rate cut by BOC.

Resistance- 1.3550,1.3600

Major support- 1.3435,1.3380