The dollar edged higher on Thursday

2024-01-04
Summary:

The dollar rose on Thursday; investors tempered Fed rate-cut expectations. Caution prevails after last month's risk rally, impacting markets.

EBC Forex Snapshot


4 Jan 2024


The dollar edged higher on Thursday as investors scaled back their expectations of rate cuts by the Fed this year, with caution hanging over markets after an impressive risk rally last month.


Minutes of December policy meeting released on Wednesday showed officials were convinced about disinflation and were concerned about the risks of over-tightening on the economy.


Data showed US manufacturing contracted further in December, though the pace of decline slowed, while job openings fell for the third straight month in Nov.

USDCAD

The loonie was not far away from its two-week low despite a spike in oil prices. Both the US and Canada will release their employment reports later in the day.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 18 Dec) HSBC (as of 4 Jan)

support resistance support resistance
EUR/USD 1.0724 1.1017 1.0826 1.1078
GBP/USD 1.2326 1.2848 1.2570 1.2790
USD/CHF 0.8667 0.8957 0.8310 0.8690
AUD/USD 0.6526 0.6750 0.6637 0.6846
USD/CAD 1.3381 1.3695 1.3213 1.3453
USD/JPY 139.48 147.50 140.70 145.41

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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