On Wednesday, the USD stabilized as the AUD surged to a near two-week high due to strong inflation data, hinting at potential interest rate hikes.
EBC Forex Snapshot
25 Oct 2023
The dollar steadied on Wednesday while the Australian dollar rose to a nearly two-week high on the chance of interest rate hikes after surprisingly strong inflation data.
Australia's consumer price index rose 1.2% in the third quarter due to higher fuel prices, above market forecasts for 1.1% and up from a 0.8% increase the previous quarter.
The British pound extended the previous day's losses as negative data affirmed the view that the BOE will likely hold interest rates next week.
The S&P Global UK Purchasing Managers' Index reached a nine-month low of 49.2 in October. The reading chimes with the trend in the eurozone.
|Citi (as of 16 Oct)||HSBC (as of 24 Oct)|
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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