FxWirePro: Forex Daily Update

The US dollar index trades lower after two days of pullback. Fed Reserve Governor Adriana Kugler said "At some point, the continued cooling of inflation and labor markets may make it appropriate to reduce the target range for the federal funds rate," Fed Minneapolis President expressed caution about an early rate cut and possible of two to three rate cut this year. It hit a low of 103.95 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 81.50% from 45.5% a week ago.

 The US 10-year yields trade weak despite the delay in the rate cut. The US 10 and 2-year spread narrowed to -32% from -53%.

Major resistance- 104.60/106

Major support- 103.60/102.90.

EURUSD-

EURUSD showed a minor pullback after a massive sell-off. German Industrial production declined for the seventh consecutive month to -1.6%, compared to a forecast of -0.40%.

Major resistance-1.0800,1.0850

Major support- 1.072,1.06600

Yen-

The yen lost its shine after dovish comments from BOJ Deputy Governor. Any break above 150 confirms further bullishness.

Major Resistance- 150,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar trades higher on surging crude oil prices.

Resistance- 1.3550,1.3660

Major support- 1.3435,1.3300