Action Insight Mid-Day Report 1-3-25

Manufacturing Stabilization Supports Dollar, European Struggle Continues

Dollar strengthened modestly following the latest ISM Manufacturing PMI, which indicated some stabilization in the US manufacturing sector toward the end of 2024. Despite the improvement, the sector continues to face challenges, with half of its industries still contracting.

The ISM report did little to shift expectations that Fed will pause its easing cycle at its next meeting on January 29, with fed fund futures pricing an 88% chance of a hold. Market attention now turns to next week’s ISM services data and the non-farm payroll report to further solidity this expectation.

For the holiday-shortened week, Yen is currently the best perform, in tight race with second-placed Dollar, while Canadian is the third. On the other hand European majors are clearly struggling with Sterling at the bottom, followed by Euro and then Swiss Franc. Aussie and Kiwi are positioning in the middle. ...

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 0.9063; (P) 0.9100; (R1) 0.9161; More…

Intraday bias in USD/CHF stays on the upside for now despite current shallow retreat. Rally from 0.8374 is in progress for 0.9223 key resistance. Strong resistance is expected there to limit upside, at least on first attempt. On the downside, below 0.9038 minor support will turn intraday bias neutral first. Nevertheless, decisive break of 0.9223 will carry larger bullish implications.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY