The dollar edged broadly higher on Monday
2024-01-08
Summary:
The dollar rose Monday with a subdued risk appetite. A key inflation report later in the week may clarify the Fed's interest rate path.
EBC Forex Snapshot
8 Jan 2024
The dollar edged broadly higher on Monday as risk appetite remained subdued ahead of a key inflation report later in the week that is likely to provide further clarity on the Fed’ interest rate path.
Market pricing now shows a roughly 64% chance that the Fed could begin easing rates as early as March, compared to a nearly 90% chance a week ago, according to the CME FedWatch Tool. The US labour market did not cool further as expected in Dec.
The yen shed 2.6% last week, the worst performance since June 2022. The powerful earthquake that hit Japan on New Year’s Day makes it harder to abolish negative interest rates soon.
| Citi (as of 2 Jan) | HSBC (as of 8 Jan) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0833 | 1.1150 | 1.0831 | 1.1095 |
| GBP/USD | 1.2527 | 1.2848 | 1.2606 | 1.2826 |
| USD/CHF | 0.8333 | 0.8667 | 0.8336 | 0.8655 |
| AUD/USD | 0.6691 | 0.6900 | 0.6611 | 0.6843 |
| USD/CAD | 1.3114 | 1.3387 | 1.3225 | 1.3449 |
| USD/JPY | 139.48 | 144.94 | 141.27 | 147.01 |
The green numbers in the table indicate an increase in data, the red numbers indicate a decrease in data, and the black numbers indicate that the data remains unchanged.
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The yen was trading around 156 on Monday
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