Summary:
Wednesday: The dollar stabilizes as the Fed downplays rate-cut bets. Range-bound in 2023 amid expectations of prolonged higher rates.
EBC Forex Snapshot
20 Dec 2023
The dollar steadied on Wednesday after more Fed officials downplayed rate cut bets. The greenback has been largely range-bound this year on the back of higher-for-longer scenario.
Market participants are pricing in a 69% chance of the first cut happening at the Fed's March meeting, followed by a 63.3% probability of another in May, the CME FedWatch tool shows.
Sterling dropped after data showed British inflation fell than expectations in Nov. CPI slowed to 3.9%, the lowest in over two years, which marked a dramatic cooldown for the second month.
| Citi (as of 11 Dec) | HSBC (as of 20 Dec) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0756 | 1.1017 | 1.0799 | 1.1085 |
| GBP/USD | 1.2326 | 1.2733 | 1.2553 | 1.2850 |
| USD/CHF | 0.8667 | 0.8957 | 0.8526 | 0.8755 |
| AUD/USD | 0.6522 | 0.6750 | 0.6589 | 0.6849 |
| USD/CAD | 1.3417 | 1.3695 | 1.3232 | 1.3528 |
| USD/JPY | 142.34 | 147.50 | 140.34 | 147.91 |
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.
The dollar held gains and rose slightly in Asia Monday as Japan's holiday cut liquidity, focusing attention on China's disappointing stimulus.
2024-10-14
The US dollar dipped from a two-month high but is set for a second consecutive weekly gain as weak labor market signals support faster Fed rate cuts.
2024-10-11
The US hovered near a two-month high on Thursday as markets grew confident in the Fed's patient monetary policy ahead of a key inflation report.
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