FxWirePro: Forex Daily Update

The US dollar index gained momentum after upbeat US economic data. The S&P Global flash US manufacturing PMI surged to 51.50 in Feb, the highest level since September 2022, compared to forecasts of 50.50. While flash services PMI declined to 51.3 in Feb from the previous month 52.50. It hit a high of 104.12 yesterday and is currently trading around 103.91.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 97.50% from 90% a week ago.

 The US 10-year yields hit a multi-week high on the strong flash manufacturing PMI. The US 10 and 2-year spread narrowed to -38.3% from -53%.

Major resistance- 104.25/105

Major support- 103/102.

EURUSD-

EURUSD  pared some of its gains after the dismal German PMI. The HCOB German Flash Composite Purchasing Managers' Index (PMI)  declines to 46.1 in Feb vs. an Estimate of 45.50. Markets await the German Ifo business climate for further direction.

Major resistance-1.0880,1.0935

Major support- 1.0760,1.0700

Yen-

The pair holds above 150 on upbeat market sentiment. Any break below 149.50 confirms minor weakness.

Major Resistance- 151,152

Major support- 148,146.50

Canadian Dollar

The Canadian dollar showed a minor sell-off despite strong retail sales. It came at 0.90% in Dec, above expectations of 0.80%.

Resistance- 1.3550,1.3600

Major support- 1.3435,1.3380