FxWirePro: Forex Daily Update

The US dollar index extended its bearish trend from a minor top of 104.97 due to upbeat market sentiment. The US index, especially the NASDAQ, hit an all-time high and gained momentum after upbeat earnings from NVIDIA.

The hawkish FOMC meeting minutes and strong US flash manufacturing PMI support the US dollar index at a lower level. It hit a low of 103.43 and is currently trading around 1033.97.

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 declined more than 3% from a multi-month high of 4.35%. 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 ECB speakers' dovish comments. ECB Governing Council member Mario Centeno told Bloomberg News in an interview that the central bank should go for an early rate cut in March.

German Ifo business climate rose to 85.50 in Feb from 85.2 the previous month.

Major resistance-1.0880,1.0935

Major support- 1.0760,1.0700

Yen-

The pair showed a minor sell-off as US yields declined. Any break below 149.50 confirms minor weakness.

Major Resistance- 151,152

Major support- 148,146.50

Canadian Dollar

The pair holds above 1.3500 on easing crude oil prices. The policy divergence between the US Fed and BOC also supports the pair at lower levels.

Resistance- 1.3550,1.3600

Major support- 1.3435,1.3380