The dollar rose on the year's first trade

2024-01-02

Summary:

The dollar rose on the first trading day of the year, with attention on this week's economic data for clues on the Fed's next move.

EBC Forex Snapshot

2 Jan 2024

The dollar crept higher on the first trading day of the year as attention turned to economic data this week that may provide clues on the Fed's next move.

Markets are now pricing in an 86% chance of interest rate cuts to start from March, according to CME FedWatch tool, with over 150 bps of easing anticipated in the year. Meanwhile, the BOE is also expected to cut rates by 144 bps in contrast.

GBPUSD

Sterling clocked its best performance last year since 2017 although a stagnant economy and political uncertainty means another gain of 5% will be unlikely.

Citibank vs. HSBC Currency Pair Data Comparison
	Citi (as of 18 Dec)		HSBC (as of 28 Dec)
	support	resistance	support	resistance
EUR/USD	1.0724	1.1017	1.0843	1.1243
GBP/USD	1.2326	1.2848	1.2590	1.2905
USD/CHF	0.8667	0.8957	0.8283	0.8697
AUD/USD	0.6526	0.6750	0.6632	0.6959
USD/CAD	1.3381	1.3695	1.3048	1.3492
USD/JPY	139.48	147.50	139.65	145.29

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.

Previous： The dollar dipped from a two-week peak on Wednesday

Next： The dollar was set to end 2023 lower

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