Forex daily update - All eyes on US FOMC meeting

The US dollar index pared some of its gains after US CPI data. Headline CPI came in line with expectations at 3.1%. On a monthly basis, headline CPI rose 0.10%  m/m while core CPI surged 0.30% mom. Markets eye US Fed monetary policy for further movement.

Major resistance- 104.30,105

Major support- 103.25/102.40.

EURUSD-

EURUSD is trading in a narrow range ahead of Fed policy.  Markets will watch for Fed dot plot and economic projections for further clarity. German ZEW economic sentiment rose to 12.8 in Dec, compared to a forecast of 8.8%.

Major resistance- 1.0830,1.09000

Major support- 1.0750,1.0660

Yen-

The Japanese Yen remains directionless ahead Fed funds rate. Japan's Tankan's manufacturing index rose to 12 vs. an estimate of 10.

Major Resistance- 146.60,148

Major support- 144.80, 143

Pound sterling

The pound sterling trades flat ahead of UK GDP data.  The claimant count change in the UK declined -11.2k compared to a forecast of -12.4k. The unemployment rate remained steady at 3.7% below expectations of 3.8%. Markets eye US Fed and BOE monetary policy for further movement.

Canadian dollar -

USDCAD showed a minor pullback due to declining oil prices. Investors await Crude oil inventories data today. Major resistance- 1.36250/1.3660. Major support- 1.3540/1.3475.  

Economic calendar -

Dec 12th, 2023,  UK GDP (7 am GMT)

                    US PPI m/m (1:30 pm GMT)

                     US federal funds rate(7 pm GMT)