FxWirePro: Forex Weekly Update

The US dollar index continues to trade weak due to weak US economic data. Richmond composite declined sharply to -11 in Dec, compared to a forecast of  -4.  Markets eye the US Pending home sales and Unemployment claims.

  According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in  Jan increased to 17.6% from 12.4% a week ago.

 The US 10-year yield hits 4 months low as the Fed plans to cut rates in 2024. The US 10 and 2-year spread narrowed to -46% from -53.6%.

Major resistance- 101.30/102

Major support- 100.70/100.

EURUSD-

EURUSD rallied above 1.1100 on board-based US dollar selling. The pair trades above trades above trend line resistance 1.108 and any indicative close above that level confirms further bullishness.

Major resistance-1.1150,1.2250

Major support- 1.1070,1.1020

Yen-

The yen gained slightly after positive Japanese trade data.

Major Resistance- 143,144

Major support- 140.70,140

Canadian Dollar

The pair dropped below 1.3200 on a dovish Fed outlook.

Major Resistance- 1.3250,1.3300

Major support- 1.3170, 1.3100

Economic calendar -

Dec 28th, 2023,        US initial jobless claims (1:30 pm GMT)

US Pending home sales  (3 pm GMT)