The Canadian dollar is weak - EBC Daily Snapshot
2023-11-22
Summary:
On Wednesday, the dollar hovered near a 2.5-month low. The Fed's recent minutes leaned dovish, affirming the end of the rate-hike cycle.
EBC Forex Snapshot
22 Nov 2023
The dollar languished near its low in 2.5 months on Wednesday after minutes of the Fed's last meeting was still slightly dovish that reinforced expectations that its rate-hike cycle was over.
US existing home sales dropped to the lowest level in more than 13 years last month due to the highest mortgage rates in two decades and a lack of house supply.
The Canadian dollar did not benefit from the dollar weakness as much as other major currencies. money markets have nearly fully discounted a BOC rate cut by April and see three cuts next year.
The country's annual inflation rate eased more than expected to 3.1% in October due to lower gasoline prices and core inflation measures hit their lowest levels in nearly two years.
| Citi (as of 13 Nov) | HSBC (as of 22 Nov) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0517 | 1.0769 | 1.0661 | 1.1061 |
| GBP/USD | 1.2037 | 1.2428 | 1.2262 | 1.2686 |
| USD/CHF | 0.8745 | 0.9338 | 0.8740 | 0.9004 |
| AUD/USD | 0.6270 | 0.6522 | 0.6398 | 0.6650 |
| USD/CAD | 1.3640 | 1.3899 | 1.3599 | 1.3830 |
| USD/JPY | 147.43 | 151.95 | 146.38 | 151.16 |
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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