FxWirePro: Forex Daily Update

The US dollar index pared most of its gains on weak US economic data real GDP came at 4.9% for the third quarter, below the estimate of 5.2%. The number of people who have filed for unemployment benefits rose by 2000 last week vs an estimate of 214K.  US Philadelphia manufacturing index declined to -10.5 in Dec vs. 3 expected.

  According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in  Jan increased to 14.5% from 12.40% a day ago.

 The US 10-year yield showed a minor pullback ahead of the US PCE. The US 10 and 2-year spread narrowed to -45.50% from -53.6%.

Major resistance- 102.65/103.20

Major support- 101.70/101.

EURUSD-

EURUSD declined slightly ahead of US PCE data. Any surge in PCE data could have a positive impact on the US dollar.

Major resistance-1.1020,1.1070

Major support- 1.0960,1.0880

Yen-

The yen showed a minor decline after weak Japanese inflation data. Japan's CPI came at 2.5% in Nov y/y below the estimate of 2.9%.

Major Resistance- 143,144

Major support- 141.80,140.70

Pound sterling

The pound sterling consolidating in an arrow range ahead of UK retail sales. Markets anticipate a rate cut by the BOE in the first quarter after weak UK CPI data.

Major Resistance- 1.2700,1.2765

Major support- 1.2600,1.2540

Economic calendar -

Dec 21st, 2023, US Durable goods orders (1:30 pm GMT)

      US Core PCE index  (1:30 pm GMT)