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.
Sterling clocked its best performance last year since 2017 although a stagnant economy and political uncertainty means another gain of 5% will be unlikely.
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.
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.
2024-09-06The 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.
2024-09-05Safe-haven currencies surged Wednesday as Wall Street and Asian stocks fell sharply, leading to losses in commodity currencies.
2024-09-04