The US dollar index showed a minor pullback ahead of US Fed monetary policy. The central bank is expected to leave the rates unchanged at 5.25%-5.50% for the fourth consecutive meeting. Markets eye Fed chairman speech and Fed dot plot for further direction.
US CB consumer confidence in Jan rose to a two-year high of 114.8 in Jan, compared to a forecast of 114.20.
According to the CME Fed watch tool, the probability of a no-rate cut in Jan unchanged at 97.9% from 97.90% a week ago.
The US 10-year yield lost its shine ahead of the US FOMC meeting. The US 10 and 2-year spread narrowed to -30% from -53%.
Major resistance- 103.75/105
Major support- 102.70/101.60.
EURUSD-
EURUSD trades weak despite a slightly upbeat Euro GDP. The Eurozone economy remains unchanged at 0% vs. Estimate -.0.10. Eurozone Economic data to be watched
German Prelim CPI m/m (All day)
Major resistance-1.08850,1.1000
Major support- 1.0800,1.07200
Yen-
The yen trading in a narrow range despite an easing US treasury yield. Any close below 146.50 confirms further bearishness.
Major Resistance- 148.80,150
Major support- 146.50,145
Canadian Dollar
The Canadian dollar is consolidating ahead of Canada's GDP data. The surge in crude oil prices supports the Canadian dollar at lower levels.
Resistance- 1.34350,1.3500
Major support- 1.3400,1.3300
Jan 31st, 2024, US ADP employment (1:15 pm GMT)
Canada GDP (1:30 pm GMT)
Chicago PMI (2:45 pm GMT)
FOMC federal funds rate (7:00 pm GMT)
