FxWirePro- Forex Daily Update

FxWirePro: Forex Daily Update

The US dollar index trades flat ahead of U ISM services PMI. "I need to see more progress to feel fully confident that inflation is on a sure path to average 2 percent over time. Only when I gain that confidence will I feel the time is right to begin lowering the federal funds rate to dial back restrictive monetary policy," Atlanta Fed President Bostic said.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar decreased to 97% from 98% a week ago.

 The US 10-year yields declined more than 4% after hitting a multi-month high.  The US 10 and 2-year spread narrowed to -35.8% from -53%.

Major resistance- 104.25/105

Major support- 103/102.

Economic data for the day

Mar 5th, 2024, US  ISM services PMI (3 pm GMT)

EURUSD-

EURUSD showed a minor pullback on board-based US dollar selling. Europe's Sentix Investors confidence for Mar rose to -10.50 compared to a forecast of -10.80.

Major resistance-1.0880,1.0935

Major support- 1.0760,1.0700

Yen-

The pair showed a minor dip after strong Japanese inflation data. The policy divergence between the US Fed and BOJ supports the pair at lower levels. Any break above  151 confirms minor bullishness.

Major Resistance- 151,152

Major support- 148,146.50

Canadian Dollar

The pair gained slightly on easing crude oil prices. Markets eye Bank of Canada monetary policy and employment data for further movement.  

Resistance- 1.3600,1.3660

Major support- 1.3500,1.3435