The US dollar index is consolidating after a nice pullback. The index gained momentum. after upbeat US CPI. The annualized CPI came in at 3.1% above expectations of 2.9%. It hit a high of 104.63 yesterday and is currently trading around 104.70.
According to the CME Fed watch tool, the probability of a no-rate cut in Mar increased to 89.5% from 81% a week ago.
The US 10-year yields pared some of its gains due to profit booking. The US 10 and 2-year spread narrowed to -32.8% from -53%.
Major resistance- 105/106
Major support- 104.50/103.80.
EURUSD-
EURUSD halted its bearish trend on steady Eurozone GDP. It came unchanged at 0% for the fourth quarter, and annualized GDP shows a minor jump of 0.10%.
Major resistance-1.0760,1.0800
Major support- 1.070,1.06600
Yen-
The pair traded flat ahead of US retail sales data. Any break above 152 confirms further bullishness.
Major Resistance- 151,152
Major support- 148,146.50
Canadian Dollar
The Canadian dollar showed a minor uptick ahead of manufacturing sales. The sell-off in crude oil prices supports the Canadian dollar at lower levels.
Resistance- 1.3600,1.3660
Major support- 1.3530,1.3480


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