FxWirePro: Forex Daily Update

The US dollar index surged sharply after stellar US Nonfarm payroll data. The US economy added 353000 jobs in Jan, compared to a forecast of 180000. Unemployment came in line with expectations of 3.70%. Wage inflation rose to 4.5% higher than the estimate of 4.1%.  The jump in employment has dashed the hopes of an early rate cut by the Fed. The central bank kept its rates unchanged and said further actions would be data-dependent.

US ISM manufacturing rose to 49.10 in Jan, above the forecast of  47.20. The price paid index jumped to 52.90 from 45.20.  

   According to the CME Fed watch tool, the probability of a no-rate cut in  Mar increased to 82.5% from 52.3

% a week ago.

 The US 10-year yield showed a minor pullback after upbeat US economic data. The US 10 and 2-year spread narrowed to -32.5% from -53%.

Major resistance- 104.50/105

Major support- 103.50/102.90.

EURUSD-

EURUSD  pared most of its after upbeat US economic data. Eurozone GDP came flat and CPI slowed down from 3.3% to 3.3% yoy. The improvement in inflation and easing Eurozone growth might push the ECB for an early rate cut in Apr.

Major resistance-1.0850,1.09350

Major support- 1.076,1.06800

Yen-

The yen lost its shine due to a surge in US treasury yields after upbeat US jobs data. Any break above 150 confirms further bullishness.

Major Resistance- 147,148.50

Major support- 145.80,145

Canadian Dollar

The Canadian dollar pared its gains on upbeat US data and easing crude oil prices.

Resistance- 1.3550,1.3660

Major support- 1.3435,1.3300

Feb 5th, 2024, US ISM services PMI  (1:30 pm GMT)

Feb 6th, 2024, Canada Ivey  PMI (3:00 pm GMT)

Feb 8th, 2024, US initial jobless claims (1:30 pm GMT)