On Thursday, the euro hit a 3-week low versus the dollar. Traders estimate an 85% chance of the ECB cutting rates in March.
EBC Forex Snapshot
7 Dec 2023
The euro eased to its lowest in over three weeks against the dollar on Thursday as traders are betting that there is about an 85% chance that the ECB cuts interest rates at the March meeting.
In comparison, markets are pricing in a 60% chance of a rate cut in March, according to CME FedWatch tool. Data showed US private payrolls increased less than expected in November
Elsewhere the Japanese yen strengthened due to a weaker dollar, inching closer to its near three-month high of 146.23 it touched at the start of the week.
BOJ Governor Kazuo Ueda said on Thursday the central bank has several options on which interest rates to target once it pulls short-term borrowing cost out of negative territory.
|Citi (as of 27 Nov)
|HSBC (as of 6 Dec)
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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