FxWirePro: Forex Daily Update

The US dollar index consolidated in a narrow range between 104.60 and 103.95 for the past four days. It hit a low of 103.96 at the time of writing and is currently trading around 104.03.

US ISM services jumped by 2.9 points to 53.4, exceeding expectations of 52. Fed officials commented that the economy remains strong and could delay rate cuts.  The number of people who have filed for unemployment benefits decreased by 9000 to 218000 in the week ended Feb 3rd, 2024, compared to a forecast of 22000.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 82.50% from 80% a week ago.

 The US 10-year yields jumped more than 9% in this month. The US 10 and 2-year spread narrowed to -30% from -53%.

Major resistance- 104.60/106

Major support- 103.60/102.90.

EURUSD-

EURUSD is showing a minor pullback after a massive sell-off. Hawkish comments from ECB policymaker Martins Kazaks, and Francois Villeroy de Galhau support Euro at lower levels. Major Eurozone economic data -

Feb 12th German ZEW economic  (10 am GMT)

Feb 13th 2024, Euro flash GDP q/q (10 am GMT)

Major resistance-1.0800,1.0850

Major support- 1.072,1.06600

Yen-

The pair trades sideways with cautious optimism. The upbeat US economic data and dovish comments from BOJ deputy governor Uchida Shinich puts pressure on the yen. Any break above 150 confirms further bullishness.

Major Resistance- 150,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar traded higher after upbeat employment data. The Canadian economy has added 37000 jobs in Jan, compared to a forecast of 16000.

Resistance- 1.3550,1.3660

Major support- 1.3435,1.3300