The dollar faces its worst week since July


The dollar is poised for the biggest weekly drop since July as the Fed signals next-year rate cuts. European central banks maintain restrictive policies.

EBC Forex Snapshot

15 Dec 2023

The dollar was set for its deepest weekly drop since July after the Fed sent its clearest signal of rate cuts for next year. Central banks in Europe decided to stick with restrictive policies.

Markets are now pricing in a 75% chance of a rate cut in March by the Fed and 150 bps in reductions by Dec 2024, according to CME FedWatch tool. That sent the 10-year Treasury yield to its lowest since July.


Sterling was up over 1% on Thursday, hitting a fresh four-month peak. The MPC said interest rates would need to be kept high for an “extended period of time” and left open the option of further rate rises if necessary.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 1 Dec) HSBC (as of 15 Dec)

support resistance support resistance
EUR/USD 1.0852 1.102 1.0803 1.1098
GBP/USD 1.2347 1.2746 1.2577 1.2874
USD/CHF 0.8684 0.8957 0.8592 0.8792
AUD/USD 0.6522 0.6750 0.6571 0.6776
USD/CAD 1.3417 1.3695 1.3311 1.3581
USD/JPY 146.70 151.91 138.65 147.38

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

The euro's recent performance has been sluggish

The dollar rose moderately on Friday as weaker-than-expected March US PPI did not relieve concerns that the Fed will delay loosening this year.

Yen near post-1990 lows

Yen near post-1990 lows

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

The US dollar consolidated on Wednesday

The US dollar consolidated on Wednesday

US dollar stabilized pre-key inflation report; Canadian dollar strengthened amid renewed Middle East uncertainties, halting oil price declines.