Summary:
Sterling extended losses Thursday, marking its steepest two-month drop after British inflation unexpectedly hit a two-year low in October.
EBC Forex Snapshot
21 Dec 2023
Sterling extended its loss on Thursday. It registered the steepest drop in two months in the previous session after data showed British inflation slowed more than expected to a two-year low in Oct.
US consumer confidence increased more than expected in December, which could help to underpin the economy next year. The 10-year Treasury yields hovered near a seven-month low.
The dollar has been on the back foot for weeks and 150 bps of cuts by the Fed are already priced in for 2024, so investors might restrain from wagers on dollar declines.
| Citi (as of 11 Dec) | HSBC (as of 21 Dec) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0756 | 1.1017 | 1.0771 | 1.1057 |
| GBP/USD | 1.2326 | 1.2733 | 1.2491 | 1.2788 |
| USD/CHF | 0.8667 | 0.8957 | 0.8538 | 0.8767 |
| AUD/USD | 0.6522 | 0.6750 | 0.6575 | 0.6831 |
| USD/CAD | 1.3417 | 1.3695 | 1.3244 | 1.3554 |
| USD/JPY | 142.34 | 147.50 | 140.22 | 147.62 |
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 dollar held gains and rose slightly in Asia Monday as Japan's holiday cut liquidity, focusing attention on China's disappointing stimulus.
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The US dollar dipped from a two-month high but is set for a second consecutive weekly gain as weak labor market signals support faster Fed rate cuts.
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The US hovered near a two-month high on Thursday as markets grew confident in the Fed's patient monetary policy ahead of a key inflation report.
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