Wednesday's weak dollar reflected lower-than-expected US inflation, fueling speculation that the Fed's tightening cycle has peaked.
EBC Forex Snapshot
15 Nov 2023
The dollar sputtered on Wednesday as a lower-than-expected US inflation reading bolstered bets that the Fed has reached the end of its monetary tightening cycle.
Markets ruled out the possibility of another rate hike next month while bets of a rate cut in May next year increased to around 50%, according to the CME Group’s FedWatch Tool.
Sterling eased after data showed British inflation cooled more than forecast
in October. CPI rose by 4.6% in Oct, the lowest level in two years, from Sep’s
6.7%.
Citi (as of 6 Nov) | HSBC (as of 15 Nov) | |||
support | resistance | support | resistance | |
EUR/USD | 1.0448 | 1.0737 | 1.0535 | 1.0776 |
GBP/USD | 1.2037 | 1.2448 | 1.2050 | 1.2410 |
USD/CHF | 0.8745 | 0.9338 | 0.8905 | 0.9131 |
AUD/USD | 0.6400 | 0.6599 | 0.6248 | 0.6502 |
USD/CAD | 1.3569 | 1.3899 | 1.3656 | 1.3928 |
USD/JPY | 147.43 | 151.95 | 149.51 | 152.46 |
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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Following strong economic news, the dollar was steady on Friday. US GDP grew at a 2.8% annual rate last quarter, beating expectations.
2024-07-26The yen reached a 2.5-month high on Thursday, with the dollar, euro, and sterling falling over 1% ahead of next week's BOJ meeting.
2024-07-25The US dollar rose on Wednesday as traders awaited inflation data. June home sales fell more than expected, and median prices hit a record high.
2024-07-24