Dollar set for the best week since July

2024-01-05
Summary:

Friday saw the dollar's strongest week since July, boosted by a robust ADP jobs report, awaiting confirmation from later official data.

EBC Forex Snapshot


5 Jan 2024


The dollar was heading for its strongest weekly performance since July on Friday due to stronger-than-expected ADP jobs report. The rally will be rested by the official print due later in the day.


The dollar has been particularly strong against other safe-haven currencies – the Swiss franc and the Japanese yen – in the first week of this year. The yield spreads may have taken hold.

USDCHF

The SNB’s effort to stem the currency’s gain proved fruitless last year. Switzerland's manufacturing PMI remained below the growth threshold for the 12th straight month though service sector hit the highest since June 2022 in Dec.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 2 Jan) HSBC (as of 5 Jan)

support resistance support resistance
EUR/USD 1.0833 1.1150 1.0842 1.1091
GBP/USD 1.2527 1.2848 1.2582 1.2802
USD/CHF 0.8333 0.8667 0.8317 0.8697
AUD/USD 0.6691 0.6900 0.6638 0.6821
USD/CAD 1.3114 1.3387 1.3211 1.3446
USD/JPY 139.48 144.94 141.59 146.30

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.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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