The US dollar index showed a minor sell-off after a pullback to 102.62. Fed governor Bowman said, "My view has evolved to consider the possibility that the inflation rate could decline further with the policy rate held at the current level for some time,". Fed's Bostic reiterated that the Fed will cut two times this year and the first rate cut to occur in the third quarter. It hit a low of 101.90 and is currently trading around 102.16.
According to the CME Fed watch tool, the probability of a no-rate cut in Jan increased to 95.3% from 82.40% a week ago.
The US 10-year yield 'showed more than 1.5% ahead of US CPI data. The US 10 and 2-year spread narrowed to -35.7% from -51.90%.
Major resistance- 103/104
Major support- 102/101.60.
EURUSD-
EURUSD jumped more than 100 pips despite upbeat US jobs data. Sentix investor confidence improved to -15.80 in Jan, from the previous level of -16.80. Eurozone consumer confidence for Dec came unchanged at -15.
Major resistance-1.1100,1.1070
Major support- 1.0880,1.0800
Yen-
The pair showed a minor selling after softer Tokyo inflation. Any close above 146 confirms further bullishness.
Major Resistance- 146,148
Major support- 144,143
Canadian Dollar
The pair jumped more than 20 pips from a minor bottom of 1.3340 on easing oil prices.
Major Resistance- 1.3380,1.3435
Major support- 1.3300, 1.3220


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