FxWirePro: Forex Weekly Update

The US dollar index gained momentum after upbeat US nonfarm payroll data. The US economy has added 216000 jobs in Dec, above expectations of 168K. Unemployment rate unchanged at 3.7% vs. Estimate of 3.8%. It hit a high of 102.51 and is currently trading around 102.48.

Minutes from FOMC's December meeting show that rates as likely at or near its peak and a further policy action depends on economic development. .

  According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 95.3% from 82.40% a week ago.

 The US 10-year yield pared some of its gains despite strong US jobs data. The US 10 and 2-year spread narrowed to -33% from -53.6%.

Major resistance- 103/104

Major support- 102/101.60.

EURUSD-

EURUSD lost its shine after strong US jobs data. Markets await Eurozone retail sales and Sentix investor confidence jobs data.  US ISM services PMI came at 50.6 in Dec, below the estimate of 52.50.

Major resistance-1.0965,1.1000

Major support- 1.0880,1.0800

Yen-

The pair recovered from a multi-week low after strong jobs data. The massive earthquake in Japan on New Year's Day will decrease the chance of ending negative interest rates by BOJ. Any close above 146 confirms further bullishness.

Major Resistance- 146,148

Major support- 144,143

Canadian Dollar

The pair gained momentum after weak Canadian jobs data. The economy has added only 100 jobs, well below the forecast of 12200.  

Major Resistance- 1.3380,1.3435

Major support- 1.3300, 1.3220

Economic calendar -

Jan  11th, 2024, US CPI m/m    (1:30 pm GMT)

Jan 12th, 2024, US Core PPI m/m  (1:30 pm GMT)

                          UK GDP m/m