The US dollar index pared some of its after weak US economic data.
US Richmond fed manufacturing index dropped to -15 vs. Expected -8. It hit a low of 103.44 and is currently trading around 103.47.
According to the CME Fed watch tool, the probability of a no-rate cut in Jan decreased to 96.90% from 97.90% a day ago.
The US 10-year yield showed a minor sell-off ahead of US PMI data. The US 10 and 2-year spread narrowed to -21.1% from -53%.
Major resistance- 103.75/105
Major support- 102/101.60.
EURUSD-
EURUSD trades flat ahead of the flash PMI. Euro consumer confidence declined to -16.10 in Jan, compared to a forecast of -14. Traders expect a 130 basis rate cut this year, with a 97% chance of the first rate cut in June.
Major resistance-1.09065,1.1000
Major support- 1.0860,1.0800
Yen-
The yen showed a minor pullback due to the escalation of geo-political tension in the Middle East. "Prospects of higher wages are gradually affecting sales prices, which is leading to a gradual increase in service prices," Ueda told a press conference. 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


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