FxWirePro: Forex Daily Update

The US dollar index showed a minor sell-off ahead of Fed monetary policy. The central bank expects to keep rates at current levels. Markets eye hints about the timings of rate cuts and how many rate cuts will happen in 2024. Any hawkish rate pause will push the US dollar index higher. It hit a low of 103.80 yesterday and is currently trading around 103.85.

According to the CME Fed watch tool, the probability of a no-rate cut in  Mar decreased to 99% from 98% a week ago.

The US 10-year yields trading flat ahead of Fed monetary policy. The US 10 and 2-year spread narrowed to -39.40% from -53%.

Major resistance- 104.25/105

Major support- 102.70/102.

EURUSD-

EURUSD jumped slightly after upbeat German economic data. The headline German ZEW economic sentiment surged to 31.70 in Mar from 19.90 in Feb. Major Eurozone economic data today

Mar 20th, 2024, ECB president Lagarde speech (8:45 am GMT)

Major resistance-1.09500,1.100

Major support- 1.0800,1.0760

Yen-

The yen pared most of its gains despite BOJ's historic rate hike in 17 years. Any break above 152 confirms minor bullishness.

Major Resistance- 152,153

Major support- 150,148.50

Canadian Dollar

The Canadian dollar declined sharply after weak Canadian CPI data.  According to Statistics Canada, annual inflation dropped to 2.8% in Feb, compared to a forecast of 3.1%.

Resistance- 1.3660,1.3700

Major support- 1.3570,1.3500