FxWirePro: Forex Daily Update

FxWirePro: Forex Daily Update 

The US dollar index surged sharply the previous week after upbeat US economic data.   US retail sales came above estimate in Dec showing that consumer spending remains strong. Several Hawkish Fed governor's speeches decreased the chance of an early rate cut by the Fed. Philly fed manufacturing declined to -10.6 in Jan, compared to a forecast of -7.0. Building permits rose to 1.50 M in Dec 1.9% higher than the previous month. Housing starts came in at a 1.46 million annual rate in Dec, which declined from the previous month's 1.53 million. It hit a high of 103.69 and is currently trading around 103.17.

   According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 97.40% from 94.80% a week ago.

 The US 10-year yield pared some of its gains after forming a minor top around 4.196%. The US 10 and 2-year spread narrowed to -27.40% from -53%.

Major resistance- 103.75/105

Major support- 102/101.60.

EURUSD- 
 
EURUSD showed a minor pullback after a massive sell-off. ECB President cautioned it is premature optimism of early rate cuts by the ECB. German PPI came well below estimate.

Major resistance-1.09065,1.1000

Major support- 1.0860,1.0800

Yen- 

The yen showed a minor jump in geopolitical tensions. The market eyes BOJ's monetary policy for further direction. Any close above 148.60 confirms further bullishness.

Major Resistance- 148.60,150

Major support- 147.70,146.40

Canadian Dollar 
    
The Canadian dollar gained momentum despite weak Canadian retail sales. 

Resistance- 1.3450,1.3550

Major support- 1.3380,1.3300

Economic calendar 

Jan 24th, 2024 German flash manufacturing and services  (8:30 am GMT)

                        BOC monetary policy and US Flash manufacturing PMI  (2:45 pm GMT)

Jan 25th, 2024,  ECB monetary policy statement (1:15 pm GMT)

Advance US GDP q/q, US durable goods order (1:30 pm GMT)

Jan 26th, 2024, US core PCE Price Index m/m