The dollar digested its gains on Tuesday

2024-01-09
Summary:

Dollar digested gains on Tuesday; traders expect multiple Fed cuts this year due to slowing US inflation. Yen rebounded from a three-week low.

EBC Forex Snapshot


9 Jan 2024


The dollar digested its gains on Tuesday, as traders reaffirmed their bets for a slew of Fed cuts this year on the belief that inflation in the US is slowing sufficiently. The yen rebounded from a three-week low.


The New York Fed's latest Survey of Consumer Expectations which showed that consumers' projection of inflation over the short run fell to the lowest level in nearly three years in Dec.

USDJPY

Tokyo's consumer prices rose 2.1% last month from a year earlier. It was the second straight month that inflation has slowed. But the reading does not reflect the impact of the recent earthquake.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 2 Jan) HSBC (as of 9 Jan)

support resistance support resistance
EUR/USD 1.0833 1.1150 1.0836 1.1100
GBP/USD 1.2527 1.2848 1.2627 1.2847
USD/CHF 0.8333 0.8667 0.8323 0.8642
AUD/USD 0.6691 0.6900 0.6614 0.6846
USD/CAD 1.3114 1.3387 1.3211 1.3441
USD/JPY 139.48 144.94 140.98 146.72

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 euro's recent performance has been sluggish

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Yen near post-1990 lows

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Thursday saw the dollar stay strong as inflation data dashed hopes for a Q2 rate cut. The yen neared its lowest since the '90s.

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The US dollar consolidated on Wednesday

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