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