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)


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