FxWirePro: Forex Daily Update

The US dollar index trades weak in a volume-thin market. The index was one of the worst performers in the past two months in rate cut hopes.  Markets eye the US Richmond manufacturing index for further direction.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in  Jan increased to 14.5% from 12.4% a week ago.

 The US 10-year yield lost more than 20% after forming a minor top around 5.02%. The US 10 and 2-year spread narrowed to -41.9% from -53.6%.

Major resistance- 102.65/103.20

Major support- 101.70/101.

EURUSD-

EURUSD breaks the previous week's high as the market opens after the Christmas holiday. The pair trades above 200-W EMA and any indicative close above that level confirms further bullishness.

Major resistance-1.1080,1.1150

Major support- 1.0960,1.0880

Yen-

The yen pared some of its gains after the release of the BOJ's summary of opinions.

Major Resistance- 143,144

Major support- 141.80,140.70

Canadian Dollar

The Canadian dollar performed well against all majors due to a jump in crude oil prices.

Major Resistance- 1.3250,1.3300

Major support- 1.3170, 1.3100

Economic calendar -

Dec 27th, 2023, US Richmond Manufacturing Index (3 pm GMT)