FxWirePro: Forex Daily Update

The US dollar index showed a minor pullback despite dismal US durable goods orders. It declined by 6.1% to $276.7 billion in Jan, well below market expectations of -4.9%. Core durable goods orders dropped to -0.30% vs. an Estimate of 0.20%. It hit a high of 103.92 at the time of writing and is currently trading around 103.92.

US conference board consumer confidence declined to 106.70 in Feb from 114.80 in Jan, below the estimate of 115.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 97.50% from 92% a week ago.

 The US 10-year yields showed a major pullback ahead of US durable goods orders. The US 10 and 2-year spread narrowed to -41.9% from -53%.

Major resistance- 104.25/105

Major support- 103/102.

Economic data for the day

US  Prelim GDP q/q (1:30 pm GMT)

EURUSD-

EURUSD lost its momentum as weak US economic data increased the chance of delay in a rate cut. Germany's Gfk Consumer Confidence Survey for March came in line with expectations at -29.  

Major resistance-1.0880,1.0935

Major support- 1.0760,1.0700

Yen-

The pair showed a minor sell-off after upbeat Japanese consumer inflation. Japan's core CPI rose 2% y/y vs. Forecast of 1.80%. Any break below 149.50 confirms minor weakness.

Major Resistance- 151,152

Major support- 148,146.50

Canadian Dollar

The pair recovered sharply on board-based US dollar buying.  The surge in crude oil prices due to the escalation of Middle East tension supports the Canadian dollar at lower levels.

Resistance- 1.3550,1.3600

Major support- 1.3435,1.3380