Wednesday's dollar struggle - EBC Daily Snapshot

2023-11-15
Summary:

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.

GBPUSDSterling 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%.

Citibank vs. HSBC Currency Pair Data Comparison

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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