The dollar is calm - EBC Daily Snapshot
2023-11-06
Summary:
The US dollar was stable on Monday, but investors prepared for further declines as the Fed turned less hawkish and US job growth slowed.
EBC Forex Snapshot
6 Nov 2023
The US dollar was little changed on Monday but investors are bracing for its extended declines after the Fed dialled down its hawkish rhetoric and US job growth cooled last month.
A drop in long-dated Treasury yields sent sterling, the Australian dollar and the yen higher. The pound surged last week but it is still down about 6% in four months.
A survey indicated that Britain's services businesses was losing momentum for a third month in a row in Oct. Markets imply around an 80% probability the ECB will be cutting rates by April, while the BOE is seen easing in August.
| Citi (as of 30 Oct) | HSBC (as of 6 Nov) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0448 | 1.0737 | 1.0581 | 1.0812 |
| GBP/USD | 1.2037 | 1.2337 | 1.2165 | 1.2486 |
| USD/CHF | 0.8745 | 0.9338 | 0.8879 | 0.9105 |
| AUD/USD | 0.6253 | 0.6445 | 0.6346 | 0.6597 |
| USD/CAD | 1.3569 | 1.3862 | 1.3542 | 1.3837 |
| USD/JPY | 147.43 | 151.95 | 148.19 | 151.14 |
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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