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


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