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