FxWirePro: Forex Daily Update

The US dollar index showed a minor pullback ahead of the US CPI.  Any weak US inflation data will increase the chance of a rate cut by the Fed. It hit a high of 102.93 and is currently trading around 102.824.

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 pared most of its gains ahead of US CPI.  The US 10 and 2-year spread narrowed to -43.80% from -53%.

Major resistance- 104.25/105

Major support- 102.30/101.60.

EURUSD-

EURUSD consolidates in a narrow range after a minor pullback. Major European economic data to watch  

German final CPI m/m

Major resistance-1.09500,1.100

Major support- 1.0850,1.0760

Yen-

The yen showed a minor weakness after dovish comments from the BOJ governor. Any break below 146.40 confirms minor bearishness.

Major Resistance- 150,151

Major support- 146.40,145

Canadian Dollar

The Canadian dollar declined slightly despite strong Canadian jobs data.   Strong crude oil also supports the Canadian dollar at lower levels.

Resistance- 1.3550,1.3600

Major support- 1.3435,1.3380