The US dollar index declined slightly due to profit booking. Fed member Loretta Mester said that the central bank would lower rates "later this year". "It would be a mistake to move rates down too soon or too quickly without sufficient evidence that inflation is on a sustainable and timely path back to 2%. It hit a low of 104.06 and is currently trading around 104.13
According to the CME Fed watch tool, the probability of a no-rate cut in Mar increased to 78.50% from 58.80% a week ago.
The US 10-year yield pared some of its gains despite strong US economic data. The US 10 and 2-year spread narrowed to -30% from -53%.
Major resistance- 104.60/106
Major support- 103.60/102.90.
EURUSD-
EURUSD showed a minor pullback ahead of German data. German factory orders surged to 8.9% in Dec, compared to a forecast of -0.10%. Markets await German industrial production.
Major resistance-1.0780,1.0850
Major support- 1.072,1.06600
Yen-
The yen lost its shine due to a delay in rate cut. Any break above 150 confirms further bullishness.
Major Resistance- 150,152
Major support- 148,146.50
Canadian Dollar
The Canadian dollar gained momentum after upbeat Canada Ivey PMI data. It hits a 9-month high at 56.50 vs. a Forecast of 55.
Resistance- 1.3550,1.3660
Major support- 1.3435,1.3300


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