The US dollar index showed a minor pullback after an upbeat US CPI. It rose 0.40% m/m in Feb, compared to a forecast of 0.30%. The consumer price index came in at 3.2% y/y, slightly above the forecast of 3.1%. It hit a high of 10 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 99% from 96% a week ago.
The US 10-year yields gained more than 3% after upbeat US CPI. The US 10 and 2-year spread narrowed to -44% from -53%.
Major resistance- 104.25/105
Major support- 102.30/101.60.
EURUSD-
EURUSD trades flat, after a nice pullback. German annualized CPI declined to 2.5% y/y last month, down from 2.9% in Jan. European economic data to watch
Euro Industrial production m/m
Major resistance-1.09500,1.100
Major support- 1.0850,1.0760
Yen-
The yen gained momentum due to the wage hike outcome. Any break above 148.20 confirms minor bullishness.
Major Resistance- 150,151
Major support- 146.40,145
Canadian Dollar
The Canadian dollar showed a minor pullback after US CPI 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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