FxWirePro: Forex Daily Update

The US dollar index gained momentum after an upbeat US ISM services PMI. It came at 53.4 in Jan, above the forecast of 52. Powell said in a CBS interview, "We just want some more confidence before we take that very important step of beginning to cut interest rates," It hit a high of 104.60 and is currently trading around 104.35.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 83.5% from 52.9% a week ago.

% a week ago.

 The US 10-year yield hit a two-week high as the chance of an early rate cut diminished.  The US 10 and 2-year spread narrowed to -31% from -53%.

Major resistance- 104.60/106

Major support- 103.60/102.90.

EURUSD-

EURUSD trades below 1.07500 on board-based US dollar buying.  The German trade surplus widened to 22.2 billion euros from 20.7 billion euros due to a slide in imports.

Major resistance-1.0850,1.09350

Major support- 1.072,1.06600

Yen-

The yen lost its shine on hawkish Fed expectations. Any break above 150 confirms further bullishness.

Major Resistance- 150,152

Major support- 148,146.50

Canadian Dollar

The pair trading higher ahead of Canada's PMI data.

Resistance- 1.3550,1.3660

Major support- 1.3435,1.3300

Feb 6th, 2024, Canada Ivey  PMI (3:00 pm GMT)

                             Fed Member Mester speaks (5 pm GMT)