The dollar traded above a more than four-month low

2023-12-22
Summary:

Friday saw the dollar above a four-month low, awaiting a crucial inflation report to gauge the Fed's potential interest rate cuts in the coming year.

EBC Forex Snapshot


22 Dec 2023


The dollar traded above a more than four-month low on Friday, with a key inflation report due later in the day that could offer clarity on how much room the Fed has to cut interest rates next year.


The yen was little changed though data that showed Japan's core consumer prices rose 2.5% in Nov from a year earlier. That marked the slowest gain since July 2022.

USDJPY

While the central bank is still expected to reverse its ultra-dovish stance in 2024, the softer inflation reading brings more uncertainty over the timing of the move.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 11 Dec) HSBC (as of 21 Dec)

support resistance support resistance
EUR/USD 1.0756 1.1017 1.0771 1.1057
GBP/USD 1.2326 1.2733 1.2491 1.2788
USD/CHF 0.8667 0.8957 0.8538 0.8767
AUD/USD 0.6522 0.6750 0.6575 0.6831
USD/CAD 1.3417 1.3695 1.3244 1.3554
USD/JPY 142.34 147.50 140.22 147.62

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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