The US dollar index recovered slightly ahead of US GDP data.
US flash manufacturing and services PMI in Jan came at 50.30 and 52.90 respectively, compared to a forecast of 47.6 and 51.40. It hit a high of 103.40 and is currently trading around 103.33.
According to the CME Fed watch tool, the probability of a no-rate cut in Jan decreased to 97.40% from 96.90% a week ago.
The US 10-year yield jumped more than 2.5% after upbeat US Flash PMI data. The US 10 and 2-year spread narrowed to -21.1% from -53%.
Major resistance- 103.75/105
Major support- 102.70/101.60.
EURUSD-
EURUSD pared some of its gains ahead of ECB monetary policy. German flash manufacturing PMI in Jan rose to 45.40, while services declined to 47.60 from 49.3. Any hawkish comments from ECB president Lagarde will push the Euro higher. Investors await the timing of the rate cut by the central bank.
Major resistance-1.09065,1.1000
Major support- 1.0860,1.0800
Yen-
The yen gained sharply after BOJ's hawkish tilt. Markets eye US durable goods orders and Jobless claims for further direction. Any close above 148.80 confirms further bullishness.
Major Resistance- 148.80,150
Major support- 146.50,145
Canadian Dollar
The Canadian dollar lost its shine after the Bank of Canada's monetary policy. It has kept its rates unchanged at 5% and dovish comments from the BOC governor have pushed the pair above 1.350.
Resistance- 1.3550,1.3600
Major support- 1.3430,1.3380
Jan 25th, 2024, ECB monetary policy statement (1:15 pm GMT)
Advance US GDP q/q, US durable goods order (1:30 pm GMT)


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