FxWirePro- Forex Daily Outlook

The US dollar index showed a minor sell-off ahead of US PPI data and retail sales. US retail sales are expected to improve to 0.80% m/m from -0.80% m/m the previous month. Retail sales, excluding autos are anticipated to surge to 0.50% MoM in Feb from -0.60% Jan. It hit a low of 102.66 yesterday and is currently trading around 102.885.

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

 The US 10-year yields gained more than 4% ahead of US PPI.  The US 10 and 2-year spread narrowed to -44% from -53%.

Major resistance- 104.25/105

Major support- 102.30/101.60.

EURUSD-

EURUSD is trading higher for the second consecutive day ahead of US PPI data. ECB board member Villeroy said that the ECB will lower rates in spring if inflation comes below 2%.

Major resistance-1.09500,1.100

Major support- 1.0850,1.0760

Yen-

The yen declined more than 100 pips despite wage increases by various large corporations. Any break above 148.20 confirms minor bullishness.

Major Resistance- 150,151

Major support- 146.40,145

Canadian Dollar

The Canadian dollar showed a minor pullback on strong crude oil prices.

Resistance- 1.3550,1.3600

Major support- 1.3435,1.3380