The US dollar index pared some of its gains despite the hawkish Fed minutes. The latest FOMC minutes show that the central bank is not planning to go for an early rate cut until inflation cools down. "Most participants noted the risks of moving too quickly to ease the stance of policy and emphasized the importance of carefully assessing incoming data in judging whether inflation is moving down sustainably to 2 percent," the minutes stated. It hit a low of 103.79 yesterday and is currently trading around 103.92.
According to the CME Fed watch tool, the probability of a no-rate cut in Mar increased to 93.50% from 90% a week ago.
The US 10-year yields traded flat ahead of the US flash manufacturing PMI. The US 10 and 2-year spread narrowed to -34.2% from -53%.
Major resistance- 105/106
Major support- 103.80/103.
EURUSD-
EURUSD showed a minor pullback after the Fed maintained its hawkish stance. Markets await Euro and German flash manufacturing PMI on Thursday and FOMC meeting minutes for further direction.
Major resistance-1.0850,1.0935
Major support- 1.0760,1.0700
Yen-
The pair gained above 150 on the policy divergence between the US Fed and BOJ. Any break below 149.50 confirms minor weakness.
Major Resistance- 151,152
Major support- 148,146.50
Canadian Dollar
The Canadian dollar showed a minor pullback on strong crude oil prices. Market eyes Canadian retail sales data for further movement.
Resistance- 1.3550,1.3600
Major support- 1.3435,1.3380


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