The dollar was set for a second week of gains

2024-03-22
Summary:

The dollar is poised for a second week of gains as BOJ's rate hike fails to impress. The Swiss franc hits a 4-month low after a surprise SNB rate cut.

EBC Forex Snapshot, 22 Mar 2024


The dollar was set for a second week of gains on Friday as the BOJ’s first rate hike within years did not impress. The Swiss franc dropped to its weakest in four months following a surprise rate cut by the SNB.


Markets are racing ahead to bet on big central banks lowering borrowing costs after the SNB’s bold move, but analysts cautioned that policymakers elsewhere may not find it easy.

USDCHF

money markets moved to price a 90% chance of an ECB rate cut by June from less than an 80% chance late on Wednesday. The Flash Eurozone Composite PMI Index rose to 49.9 in March, the best reading since June.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 18 Mar) HSBC (as of 22 Mar)

support resistance support resistance
EUR/USD 1.0695 1.1017 1.0802 1.0949
GBP/USD 1.2503 1.2896 1.2570 1.2817
USD/CHF 0.8741 0.9000 0.8804 0.9069
AUD/USD 0.6443 0.6691 0.6474 0.6665
USD/CAD 1.3359 1.3607 1.3426 1.3622
USD/JPY 146.26 149.21 148.10 153.48

The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained 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.

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