FxWirePro: Forex Daily Update

The US dollar index declined slightly after hitting a multi-week high at 103.69. It hit a low of 103.11 and is currently trading around 103.15.

   According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 97.40% from 94.80% a week ago.

 The US 10-year yield dropped more than 2.5% amid diminishing early rate cut hopes. The US 10 and 2-year spread narrowed to -28.70% from -53%.

Major resistance- 103.75/105

Major support- 102/101.60.

EURUSD-

EURUSD trades flat ahead of the ECB policy decision. Markets eye the timing of the rate cut by the central bank. According to a Reuters poll, 55% of respondents predict no rate cut until the second half of the year, and 45% anticipate a rate cut in June.

Major resistance-1.09065,1.1000

Major support- 1.0860,1.0800

Yen-

The yen showed a minor dip after the BOJ monetary policy. The central bank has kept its rate unchanged and trimmed inflation forecast. Any close above 148.80 confirms further bullishness.

Major Resistance- 148.80,150

Major support- 147.70,146.40

Canadian Dollar

The Canadian dollar trades flat ahead of BOC monetary policy.

Resistance- 1.3500,1.3550

Major support- 1.3430,1.3380