Summary:
Tuesday saw the dollar climb, with reduced expectations for Fed rate cuts after the ECB's hawkish remarks. The euro lost momentum.
EBC Forex Snapshot
16 Jan 2024
The dollar rose on Tuesday as investors pared back bets on near-term rate-cuts by the Fed following hawkish comments from ECB. The euro lost its upward momentum.
Markets are now pricing in a 66% chance of a 25 bps cut in March by the Fed, the CME FedWatch Tool showed. Meanwhile the ECB and the BOE are expected to cut interest rates later, mostly likely in April and May respectively.
The pound fell after data showed that growth in British wages slowed in the three months through Nov - a sign the labour market was normalising.
| Citi (as of 8 Jan) | HSBC (as of 16 Jan) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0833 | 1.1150 | 1.0836 | 1.1100 |
| GBP/USD | 1.2536 | 1.2848 | 1.2612 | 1.2832 |
| USD/CHF | 0.8333 | 0.8667 | 0.8398 | 0.8644 |
| AUD/USD | 0.6641 | 0.6900 | 0.6561 | 0.6815 |
| USD/CAD | 1.3177 | 1.3483 | 1.3246 | 1.3529 |
| USD/JPY | 139.48 | 144.96 | 141.84 | 148.01 |
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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