The dollar slipped on Thursday - EBC Daily Snapshot

2023-12-14
Summary:

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.

EURUSD

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.

Citibank vs. HSBC Currency Pair Data Comparison

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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