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.
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.
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.
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