Euro hits August high - EBC Daily Snapshot
2023-11-21
Summary:
On Monday, the dollar index hit a 2-month low, extending its decline as investors considered peak interest rates and a >50% chance of a May cut.
EBC Forex Snapshot
21 Nov 2023
The dollar index fell to its lowest in more than two months on Monday, continuing its downtrend as investors weighed peak interest rates and priced in a greater than 50% chance of a cut by May.
Richmond Fed President Thomas Barkin said inflation is likely to remain "stubborn" and force the central bank to keep interest rates higher for longer than investors currently anticipate.
The euro hit its high since mid-Aug against the dollar on expectations that the ECB may end tightening cycle later than the Fed. Moody’s unexpected upgrade of Italy’s debt outlook also helped.
| Citi (as of 13 Nov) | HSBC (as of 21 Nov) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0517 | 1.0769 | 1.0650 | 1.1092 |
| GBP/USD | 1.2037 | 1.2428 | 1.2223 | 1.2654 |
| USD/CHF | 0.8745 | 0.9338 | 0.8744 | 0.9032 |
| AUD/USD | 0.6270 | 0.6522 | 0.6389 | 0.6650 |
| USD/CAD | 1.3640 | 1.3899 | 1.3601 | 1.3873 |
| USD/JPY | 147.43 | 151.95 | 146.83 | 150.90 |
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.
The Swiss franc rose to a more than one-week high
On Friday, the US dollar fell to a one-week low as mixed job market signals emerged before key payroll data likely to influence Fed policy.
2024-09-06
The yen strengthens as a safe haven
The dollar fell Thursday on US economic worries, with the yen rising on safe-haven demand. Traders see a 44% chance of a 50-bp cut this month.
2024-09-05
Safe-haven currencies rallied on Wednesday
Safe-haven currencies surged Wednesday as Wall Street and Asian stocks fell sharply, leading to losses in commodity currencies.
2024-09-04
