The dollar was on solid footing on Wednesday

2024-01-24
Summary:

Wednesday's robust dollar is due to stronger-than-expected jobs and inflation reports, causing investors to lower bets on Fed interest rate cuts in Q1.

EBC Forex Snapshot


24 Jan 2024


The dollar was on solid footing on Wednesday as jobs and inflation report that came stronger than expected earlier in the month made investors reduce bets that the Fed will cut interest rates in Q1.


The rate futures market priced in a roughly 47% chance of a March rate cut, sharply down from as much 80% about two weeks ago, according to LSEG. San Francisco Fed President Mary Daly said an imminent rate cut is not necessary.

USDCHF

The Swiss franc rallied from more than one-month low despite verbal interventions by the SNB. President Thomas Jordan said a stronger currency has been painful for domestic companies.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 15 Jan) HSBC (as of 24 Jan)

support resistance support resistance
EUR/USD 1.0848 1.1139 1.0781 1.0959
GBP/USD 1.2536 1.2848 1.2592 1.2784
USD/CHF 0.8333 0.8667 0.8527 0.8802
AUD/USD 0.6612 0.6900 0.6481 0.6718
USD/CAD 1.3093 1.3177 1.3316 1.3572
USD/JPY 140.59 146.49 144.53 150.49

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 dollar tracked toward monthly gains on Thursday

The dollar tracked toward monthly gains on Thursday

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The dollar inched up on Wednesday

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Despite US durable goods orders falling more than expected, the dollar edged up on Wednesday. The market mostly excludes a Fed rate cut before June.

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