The dollar held near a two-week high on Wednesday

2023-12-06
Summary:

Wednesday saw the dollar near a two-week high and the euro weaken globally amid bets that the ECB will loosen in H1 2024, following the Fed.

EBC Forex Snapshot


6 Dec 2023


The dollar held near a two-week high on Wednesday, while the euro was weak across the board as markets ramped up bets that the ECB will begin loosening in the first half of 2024 like the Fed.


Traders have priced around a 60% chance of rate cuts by the Fed in March, according to CME's FedWatch tool. They have also priced in at least 125 bps of cuts next year.

EURUSD

Data on Tuesday showed US job openings fell to more than a 2.5-year low in October, adding to signs that higher interest rates were taking a toll on labour market.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 27 Nov) HSBC (as of 6 Dec)

support resistance support resistance
EUR/USD 1.0517 1.0965 1.0708 1.0949
GBP/USD 1.2037 1.2746 1.2398 1.2760
USD/CHF 0.8553 0.9338 0.8642 0.8877
AUD/USD 0.6445 0.6750 0.6437 0.6677
USD/CAD 1.3490 1.3855 1.3453 1.3752
USD/JPY 149.21 151.91 145.08 150.34

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.

The US dollar rose broadly on Tuesday

The US dollar rose broadly on Tuesday

The US dollar surged Tuesday on expectations of prolonged high interest rates, while the Australian dollar fell despite China's LPR cut.

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