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


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