The dollar edged up on Monday as investors assessed US economic data before the Fed meeting. A 48% probability is assigned for a March rate cut.
EBC Forex Snapshot
26 Jan 2024
The dollar started the week slightly higher on Monday as investors weighed US economic data ahead of the Fed meeting this week. Markets are currently pricing in a 48% chance of a rate cut in March.
The Canadian dollar steadied after a two-week straight decline. Three-month implied volatility for the currency is trading at an annualised rate of about 5.25%, nearly its lowest level since March 2020.
Oil prices jumped as more attacks had been seen in the Red Sea. The BOC said its focus is shifting to when to cut borrowing costs rather than whether to hike again at a meeting last week.
|Citi (as of 22 Jan)
|HSBC (as of 29 Jan)
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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