FxWirePro: Forex Daily Update

The US dollar index recovered more than 70 pips after upbeat US inflation. The US CPI report showed that both the headline and core surged above expectations levels. The US monthly and annual PPI came in above analyst estimates. It hit a high of 103.48 yesterday and is currently trading around 103.459.

US retail sales rose by 0.60% m/m in Feb, below the estimate of 0.80%. Retail sales ex-auto came at 0.30% vs. a Forecast of 0.50%.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar decreased to 99% from 96% a week ago.

Markets eye US Fed monetary policy on Wednesday for further direction.

 The US 10-year yields trade higher as the Fed is expected to postpone the rate cut. The US 10 and 2-year spread narrowed to -42.40% from -53%.

Major resistance- 103.60/104.25

Major support- 102.70/102.

EURUSD-

EURUSD trades lower on board-based US dollar buying. The policy divergence between the Fed and the ECB is putting pressure on the Euro at higher levels. Major Eurozone economic data this week

Mar 19th 2024, German ZEW economic sentiment (10 am GMT)

Mar 20th, 2024, ECB President Lagarde speech (8:45 am GMT)

Mar 21st, 2024, German flash manufacturing and services PMI (8:30 am GMT)

Mar 22nd,2024 German Ifo business climate (9 am GMT)

Major resistance-1.09500,1.100

Major support- 1.0850,1.0760

Yen-

The pair jumped more than 150 pips ahead of BOJ's monetary policy. The Bank of Japan expected to keep its negative rates for some more time. Any break above 150 confirms minor bullishness.

Major Resistance- 150,151

Major support- 146.40,145

Canadian Dollar

The Canadian dollar showed a minor sell-off ahead of the Canadian CPI. Any dismal Canadian CPI will push the pair further higher.

Resistance- 1.3550,1.3600

Major support- 1.3435,1.3380