FxWirePro: Forex Daily Update

The US dollar index jumped slightly ahead of US ISM manufacturing PMI data and FOMC meeting minutes. It hit a high of 102.25 and is currently trading around 102.09.

  According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 89.10% from 83.5% a week ago.

 The US 10-year yield surged more than 6% from a multi-month low of 3.78%. The US 10 and 2-year spread narrowed to -38% from -53.6%.

Major resistance- 102/103

Major support- 100.70/100.

EURUSD-

EURUSD lost its shine on board-based US dollar buying.  The souring market mood and weak economic data increased the chance of economic recession. Economic data to watch German and Spanish unemployment change.

Major resistance-1.100,1.1075

Major support- 1.0930,1.0860

Yen-

The pair is consolidating ahead of the US FOMC meeting minutes. Any break above 142.25 confirms further bullishness.

Major Resistance- 142.30,143

Major support- 141.50,140.70

Canadian Dollar

The pair gained momentum on easing Crude oil prices and board-based US dollar buying.  

Major Resistance- 1.3350,1.3435

Major support- 1.3250, 1.3170

Economic calendar -

Jan 3rd, 2024, US IS Manufacturing PMI  (3:00 pm GMT)

                        FOMC meeting minutes (7:00 pm GMT)