FxWirePro: Forex Daily Update

The US dollar index showed a minor sell-off despite upbeat US economic data. US Conference Board consumer rose to 110.70 in Nov, compared to a forecast of 104.60. US existing home sales increased 0.80% unexpectedly in Oct to a seasonally adjusted annual rate of 3.82 million vs. an Estimate of 3.77 million.

  According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in  Jan increased to 12.4% from 10.2% a week ago.

 The US 10-year yield lost more than 1.5% after a minor pullback. The US 10 and 2-year spread narrowed to --50% from -39%.

Major resistance- 102.65/103.20

Major support- 101.70/101.

EURUSD-

EURUSD has consolidated in a narrow range between 1.09874 and 1.09296 for the past two days. German PPI declined by 7.9% y/y in Nov, below the market consensus of -7.5%. German GfK Consumer Confidence index improved slightly to -25.10 from a revised -27.60.

Major resistance- 1.0965,1.1020

Major support- 1.08600,1.0800

Yen-

The yen gained sharply despite the dovish BOJ policy stance. Market eyes on Japan CPI and monetary policy meeting minutes.

Major Resistance- 144,145

Major support- 142.80,141.50

Pound sterling

The pound sterling lost its shine after weak UK inflation. UK CPI came at 3.9% in Nov, compared to a forecast of 4.4%. The core CPI increased 5.1%  y/y in Nov vs. Forecast of 5.6%.

Major Resistance- 1.2700,1.2765

Major support- 1.2600,1.2540

Economic calendar -

Dec 21st, 2023, US Final GDP q/q (1:30 pm GMT)

     US unemployment claims (1:30 pm GMT)