EURUSD: Leading EU economic sectors are recovering
The macroeconomic data block released the day before allowed EURUSD to go into positive territory, staying close to 1.0610.
The US dollar keeps on the correction of the previous year, because the volatility index is absent in the price movement for the fifth session in a row, in the background of which the "American" keeps on testing the level of 104.000 USD Index because of the inner political problems. Thus, after voting six times in a row to appoint the speaker of the US House of Representatives, the "Republican" leader Kevin McCarthy was not able to take the post. Only 201 officials voted for him, out of the 218 needed, while the Democratic representatives gave unanimous support to Hakeem Jeffries' nomination. The next round of elections is scheduled for today, December 5, and the lower house of Congress is currently on hold. The White House administration, assessing the situation in Congress, said it would not interfere with the voting process. Meanwhile, the JOLTS November report was expected to show a downward correction in the U.S. jobs market to 10.458 million from 10.512 million the prior month, providing further negative stimulus for the U.S. dollar.
- Resistance levels: 1.0700 and 1.0910.
- Support levels: 1.0530, 1.0330.
USDCHF: The pair is fluctuating.
"The American" is trading multidirectionally against the Swiss franc in the Asian trading session, reflecting a consolidation at 0.9300. Earlier the US dollar had fallen fast against the background of the macroeconomic data block, including the final minutes of the US Federal Reserve System summit in December.
According to the statistics the U.S. manufacturing sector from the ISM (Institute for Supply Management) showed the correction to 48.4 points in December against the market expectations of 48.5 points, the initial orders of the manufacturing sector decreased to 45.2 points from 47.2 points, whereas the analysts estimated the growth to 48.1 points. However, the number of manufacturing employment for December strengthened to 51.4 points from 48.4, contrary to expectations of the decrease to 48.3 points. The outcome of the U.S. Federal Reserve's December meeting indicated that the regulator plans to maintain the vector of monetary tightening throughout 2023 until inflation returns to the 2.0% target.
- Resistance levels: 0.9300, 0.9350, 0.9400 and 0.9478.
- Support levels: 0.9250, 0.9200, 0.9150, 0.9100.
USDCAD: The U.S. currency has retreated from the positions it took the day before
The U.S. dollar traded up moderately against the Canadian currency during morning trading, gradually recovering the value lost earlier. The trading instrument USDCAD is around 1.3500 continuing to strengthen, moving away from the low of December 5. The American currency was under significant pressure due to macroeconomic statistics.
Thus, the PMI (business activity index) from ISM (Institute for Supply Management) in the national manufacturing sector for December showed downward correction to 48.4 points from the previous 49.0 points, which was 0.1 points less than the experts' estimates. Moreover, investors appreciated the final minutes of the U.S. Federal Reserve System summit in December which confirmed the agency's plans to continue with further tightening of the monetary parameters.
In the short term the interest of the market participants will be focused around the macroeconomic statistics of the December employment market. The release of the ADP (Automatic Data Processing) report on the US private sector employment is scheduled for January 5, anticipating the final document from the Labor Department at the end of the week. Canada's final report is also scheduled for release on January 6, with current estimates indicating unemployment at 5.2% versus 5.1% previously, with employment up by only 8K, showing a slowdown from 10.1K in November.
- Resistance levels: 1.3500, 1.3550, 1.3600, 1.3650.
- Support levels: 1.3450, 1.3400, 1.3350, 1.3300.
Silver prices analysis
During the APAC trading session, the precious metal displayed a divergent trend, testing the 23.70 level.
Earlier the precious metal corrected to the downward trend due to the release of the final minutes of the US Federal Reserve and the release by investors of their long contracts before the release of the ADP (Automatic Data Processing) employment statistics, according to which experts estimate an increase of 150.0 thousand in the number of employed workers, having earlier strengthened by 127.0 thousand a month earlier. Preliminary estimates for the U.S. Department of Labor data are more restrained, as analysts expect a downward correction in payrolls per hour average and an increase in new job openings of only 200.0k, previously showing an increase of 263.0k for November. With the numbers holding steady - if inflation holds steady at 3.7% and employment numbers are in line with forecasts, the Fed will gain further traction to develop an interest rate correction as part of its bid to overcome soaring inflation, which will only add to the downside for silver.
- Resistance levels: 24.00, 24.42, 24.67 and 25.00.
- Support levels: 23.60, 23.32, 23.00, 22.70.