Thursday saw the dollar dip as the Fed's new economic outlook suggested the end of the interest-rate hike cycle, signaling a policy shift in 2024.
EBC Forex Snapshot
14 Dec 2023
The dollar slipped on Thursday after the Fed's latest economic projections indicated that the interest-rate hike cycle has ended and policy shift will happen in 2024.
Markets are now pricing in around a 75% chance of a rate cut in March, according to CME FedWatch tool, compared with 54% a week earlier. A soft landing is more likely for the US economy.
The euro jumped in response. The ECB is going to announce its policy decision later in the day and the central banks is expected to wrap up the most aggressive rate hikes in decades.
Citi (as of 1 Dec) | HSBC (as of 14 Dec) | |||
support | resistance | support | resistance | |
EUR/USD | 1.0852 | 1.1020 | 1.0724 | 1.1019 |
GBP/USD | 1.2347 | 1.2746 | 1.2499 | 1.2735 |
USD/CHF | 0.8684 | 0.8957 | 0.8637 | 0.8821 |
AUD/USD | 0.6522 | 0.6750 | 0.6551 | 0.6736 |
USD/CAD | 1.3417 | 1.3695 | 1.3426 | 1.3660 |
USD/JPY | 146.70 | 151.91 | 139.82 | 147.83 |
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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Following strong economic news, the dollar was steady on Friday. US GDP grew at a 2.8% annual rate last quarter, beating expectations.
2024-07-26The yen reached a 2.5-month high on Thursday, with the dollar, euro, and sterling falling over 1% ahead of next week's BOJ meeting.
2024-07-25The US dollar rose on Wednesday as traders awaited inflation data. June home sales fell more than expected, and median prices hit a record high.
2024-07-24