The dollar steadied on Wednesday

2023-12-20
Summary:

Wednesday: The dollar stabilizes as the Fed downplays rate-cut bets. Range-bound in 2023 amid expectations of prolonged higher rates.

EBC Forex Snapshot


20 Dec 2023


The dollar steadied on Wednesday after more Fed officials downplayed rate cut bets. The greenback has been largely range-bound this year on the back of higher-for-longer scenario.


Market participants are pricing in a 69% chance of the first cut happening at the Fed's March meeting, followed by a 63.3% probability of another in May, the CME FedWatch tool shows.

GBPUSD

Sterling dropped after data showed British inflation fell than expectations in Nov. CPI slowed to 3.9%, the lowest in over two years, which marked a dramatic cooldown for the second month.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 11 Dec) HSBC (as of 20 Dec)

support resistance support resistance
EUR/USD 1.0756 1.1017 1.0799 1.1085
GBP/USD 1.2326 1.2733 1.2553 1.2850
USD/CHF 0.8667 0.8957 0.8526 0.8755
AUD/USD 0.6522 0.6750 0.6589 0.6849
USD/CAD 1.3417 1.3695 1.3232 1.3528
USD/JPY 142.34 147.50 140.34 147.91

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 firmed on Tuesday

The euro firmed on Tuesday

The euro rose on Tuesday but faced its biggest monthly drop since January. Eurozone business surged in April with strong service sector growth.

2024-04-23
The yen barely moved in Asian trading on Monday

The yen barely moved in Asian trading on Monday

The yen stayed steady in Asian trading on Monday, while the US dollar held near five-month highs after last week's policy and geopolitical changes.

2024-04-22
A wave of risk aversion swept over markets on Friday

A wave of risk aversion swept over markets on Friday

Markets experienced a wave of risk aversion on Friday as reports emerged of Israel attacking Iran, prompting investors to seek safe-haven currencies.

2024-04-19