The dollar rose on the year's first trade


The dollar rose on the first trading day of the year, with attention on this week's economic data for clues on the Fed's next move.

EBC Forex Snapshot

2 Jan 2024

The dollar crept higher on the first trading day of the year as attention turned to economic data this week that may provide clues on the Fed's next move.

Markets are now pricing in an 86% chance of interest rate cuts to start from March, according to CME FedWatch tool, with over 150 bps of easing anticipated in the year. Meanwhile, the BOE is also expected to cut rates by 144 bps in contrast.


Sterling clocked its best performance last year since 2017 although a stagnant economy and political uncertainty means another gain of 5% will be unlikely.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 18 Dec) HSBC (as of 28 Dec)

support resistance support resistance
EUR/USD 1.0724 1.1017 1.0843 1.1243
GBP/USD 1.2326 1.2848 1.2590 1.2905
USD/CHF 0.8667 0.8957 0.8283 0.8697
AUD/USD 0.6526 0.6750 0.6632 0.6959
USD/CAD 1.3381 1.3695 1.3048 1.3492
USD/JPY 139.48 147.50 139.65 145.29

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 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.