The euro eased to its lowest in over three weeks

2023-12-07
Summary:

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

USDJPY

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.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 27 Nov) HSBC (as of 6 Dec)

support resistance support resistance
EUR/USD 1.0517 1.0965 1.0708 1.0949
GBP/USD 1.2037 1.2746 1.2398 1.2760
USD/CHF 0.8553 0.9338 0.8642 0.8877
AUD/USD 0.6445 0.6750 0.6437 0.6677
USD/CAD 1.3490 1.3855 1.3453 1.3752
USD/JPY 149.21 151.91 145.08 150.34

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.

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