The dollar remained under pressure on Wednesday


Dollar weak, euro near 4-month high on Fed rate cut expectations. Holiday-related low trading volumes are expected until the New Year.

EBC Forex Snapshot

27 Dec 2023

The dollar remained under pressure on Wednesday and the euro was close to a four-month peak, as expectations that the Fed would soon cut interest rates took hold in the market. With many traders out for holidays, volumes are likely to be muted until the New Year.

Markets are now pricing in a 79% chance of a rate cut starting in March 2024, according to CME FedWatch tool, with over 150 basis points of cuts priced in for next year.


The eurozone economy is set for only modest growth next year despite wages rising faster than inflation for the first time in three years, according to a FT poll of economists.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 14 Dec) HSBC (as of 27 Dec)

support resistance support resistance
EUR/USD 1.0724 1.1017 1.0828 1.1150
GBP/USD 1.2326 1.2848 1.2551 1.2848
USD/CHF 0.8667 0.8957 0.8424 0.8732
AUD/USD 0.6445 0.6526 0.6622 0.6928
USD/CAD 1.3381 1.3695 1.3051 1.3479
USD/JPY 139.48 147.50 139.78 146.15

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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Currency pressures persist on Thursday

Currency pressures persist on Thursday

On Thursday, the dollar weakened while pressures on other currencies persisted. Strong data dampened expectations of Fed rate cuts in June.

Pound rises from fall to rise

Pound rises from fall to rise

Fed Chair Powell's comments on Wednesday drove a modest dollar gain, citing limited progress on inflation goals. Traders predict a 40-bps cut by 2024.

The dollar rose to a five-month high on Tuesday

The dollar rose to a five-month high on Tuesday

The dollar hit a 5-month high on Tuesday as US retail sales surged 0.7% in March, beating economists' 0.4% forecast.