The dollar started Monday on the front foot
2023-12-11
Summary:
The dollar opened strong on Monday, with US inflation data and the final Fed meeting of the year expected to shape the week ahead.
EBC Forex Snapshot
11 Dec 2023
The dollar started Monday on the front foot, with a reading on US inflation and the Fed's last policy meeting for the year likely to set the tone for the week.
Data on Friday showed job growth accelerated in November while the unemployment rate fell to 3.7%. The figure was stronger than expected and defied expectations for rate cuts in the first half of 2024.
The Canadian dollar was weighed by weak oil prices. Analysts see less upside for the currency than previously thought over the coming year, according to a Reuters poll.
The median forecast was 1.3533 per dollar in three months and 1.3130 in a year. The Canadian economy contracted at an annualised rate of 1.1 in the last quarter, so the BOC could begin cut rates as early as March.
| Citi (as of 1 Dec) | HSBC (as of 8 Dec) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0852 | 1.1020 | 1.0692 | 1.0955 |
| GBP/USD | 1.2347 | 1.2746 | 1.2445 | 1.2734 |
| USD/CHF | 0.8684 | 0.8957 | 0.8651 | 0.8861 |
| AUD/USD | 0.6522 | 0.6750 | 0.6503 | 0.6695 |
| USD/CAD | 1.3417 | 1.3695 | 1.3459 | 1.3747 |
| USD/JPY | 146.70 | 151.91 | 140.55 | 148.84 |
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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