FxWirePro: Forex Daily Update

The US dollar index trading flat despite weak US ISM services PMI. It came at 52.6 in Feb compared to a forecast of 53. It hit a low of 103.58 and is currently trading around 103.80.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar decreased to 97% from 98% a week ago.

 The US 10-year yields declined more than 5% after hitting a multi-month high.  The US 10 and 2-year spread narrowed to -40 from -53%.

Major resistance- 104.25/105

Major support- 103/102.

Economic data for the day

Mar 6th, 2024, Fed Powell testimony  (3 pm GMT)

         EURUSD-

EURUSD consolidated in a narrow range between 1.07958 and 1.08761 for the past three days. Germany's services PMI rose to 48.3 in Feb, from 47.70 in Jan, above the forecast of 48.20. Major European economic data

German retail sales

German Trade balance

Major resistance-1.0880,1.0935

Major support- 1.0760,1.0700

Yen-

The pair showed a major sell-off due to BOJ policy uncertainty. The policy divergence between the US Fed and BOJ supports the pair at lower levels. Any break below 149.50 confirms minor bearishness.

Major Resistance- 151,152

Major support- 149.50,148

Canadian Dollar

The pair gained slightly ahead of BOC's monetary policy. Any dovish rate pause will push USDCAD further up.  

Resistance- 1.3600,1.3660

Major support- 1.3500,1.3435