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FxWirePro: Forex daily update

US dollar index-

The US dollar index lost its shine after dovish Fed monetary policy. It has kept its rates unchanged for the third straight meeting. The central bank said that the economy "has slowed down " since Q3 2023. Fed dot plot shows that there will 3 rate cuts in 2024 (0.75%). According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Mar increased to 69.90% from 39.7% a day ago.

 

 The US 10-year yield declined more than 5% after the dovish Fed policy. The US 10 and 2-year spread narrowed to -38% from -52%.

 

Major resistance- 103.20,104.25

 

Major support- 102.40/101.

 

EURUSD-

 

EURUSD is trading above 1.0900 as the Fed indicates a 0.75% rate cut in 2024. Markets eye ECB policy meeting today for further movement. Analysts predict European Central will cut rates by 150 basis points next year.

 

Major resistance- 1.0930,1.1000

 

Major support- 1.0865,1.0800

 

Yen-

 

The Japanese Yen hits a fresh multi-month low on board-based US dollar weakness.

 

Major Resistance- 142.25,143

 

Major support- 140.80,140

 

Pound sterling

 

The pound sterling jumped above 1.26500 on a dovish Fed rate pause. Investors eye the Bank of England monetary policy meeting for further upside.

 

Major Resistance- 1.2700,1.2760

 

Major support- 1.2600,1.25400

 

Economic calendar -

 

Dec 14th, 2023,  SNB monetary policy (8:30 am GMT)

                                                 

     BOE monetary policy summary (noon GMT)

 

    ECB monetary policy (1:15 pm GMT)

                          

      US retail sales (1:30 pm GMT)

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