FxWirePro: Forex Daily Update

FxWirePro: Forex Daily Update 

The US dollar index pared some of its gains despite strong US CPI. US headline CPI  rose to 3.4% YoY, compared to s forecast of 3.2%.. Annual core CPI increased 3.9%  from 4% in November. It hit a high of 102.76 and is currently trading around 102.29.

  According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 95.3% from 93.80% a week ago.

 The US 10-year yield 'trades weak despite upbeat US CPI. The US 10 and 2-year spread narrowed to -29.2% from -51.90%.

Major resistance- 103/104

Major support- 102/101.60.

EURUSD- 
 
EURUSD consolidating in a narrow range between 1.09101 and 1.09982 for the past three days. Federal Reserve Bank of Cleveland said, "I think March is probably too early in my estimate for a rate decline because I think we need to see some more evidence,".

Major resistance-1.1100,1.1070

Major support- 1.0880,1.0800

Yen- 

The yen gained momentum and halted one week of bearish trend. The ultra-dovish BOJ and decreasing chance of early rate cut will protect USDJPY from further selling. Any close above 146 confirms further bullishness.

Major Resistance- 146,148

Major support- 144,143

Canadian Dollar 
    
The Canadian dollar gained momentum on surging Crude oil prices.

Major Resistance- 1.3450,1.3500

Major support- 1.3350, 1.3280