FxWirePro: Forex Daily Update

FxWirePro: Forex Daily Update 

The US dollar index showed a minor pullback despite a slowdown in US inflation. US Headline rose 0.30% m/m  in Jan, in line with the estimate. Core PCE  came at 0.40%, matched forecasts. It hit a low of 103.839 at the time of writing and is currently trading around 103.846.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 97% from 96% a week ago.

 The US 10-year yields declined slightly after poor PCE data. The US 10 and 2-year spread narrowed to -37.4% from -53%.

Major resistance- 104.25/105

Major support- 103/102.

Economic data for the day 

US  ISM manufacturing PMI  (3 pm GMT)

         EURUSD-
 
EURUSD trades lower after weak German CPI data. The headline inflation came at 2.5% below the estimate of 2.6%. Chicago PMI fell to 44 in Feb vs. the Forecast of  48.10.

 
Major resistance-1.0880,1.0935

Major support- 1.0760,1.0700

Yen- 

The yen lost its shine despite hawkish comments from BOJ Takata. Any break above  151 confirms minor bullishness.

Major Resistance- 151,152

Major support- 148,146.50

Canadian Dollar 
    
The pair consolidated in a narrow range despite the strong Canadian GDP. The Canadian economy expanded at an annualized rate of 1.% above the forecast of 0.80%.  

Resistance- 1.3600,1.3660

Major support- 1.3435,1.3380