FxWirePro: Forex Daily Update

The US dollar index surged sharply after upbeat US economic data. It hit a high of 105.07 yesterday and is currently trading around 105.04.

US ISM manufacturing index expanded in March to 50.30 after 16 months of contraction, compared to a forecast of 48.50.

According to the CME Fed watch tool, the probability of a no-rate cut in  June increased to 62.10% from 55.20% a day ago.

 The US 10-year yields jumped more than 3.5%. The US 10 and 2-year spread narrowed to -38.80% from -53%.

Major resistance- 105.20/106

Major support- 104.40/103.80

Apr 2nd, 2024  FOMC member Mester speech (5 pm GMT)

EURUSD-

EURUSD  trades weak ahead of the German CPI data.

US GDP came at 3.4% in the fourth quarter,  above the estimate of 3.2%. The number of people who have filed for unemployment benefits declined to 210K in the week ending March 23rd, compared to a forecast of 215 K.

 Eurozone economic data today

Apr 2nd, 2024, German Prelim CPI m/m (All day GMT)

                          German final Manufacturing PMI (8:55 am GMT)

Major resistance-1.0770,1.0850

Major support- 1.0700,1.0660

Yen-

The pair gained as the probability of a rate cut in June by the Fed reduced.  Any break above 152 confirms minor bullishness.

Major Resistance- 152,153

Major support- 150,149

Canadian Dollar

The pair trades higher despite strong crude oil prices.  Business sentiment and sales growth expectations have stopped falling, according to firms responding to the Business Outlook Survey and the Business Leaders' Pulse.

Resistance- 1.3620,1.3660

Major support- 1.3550,1.3500