Summary:
The dollar rose ahead of the final Fed meeting this year. The unexpected US consumer price increase in November tempered expectations.
EBC Forex Snapshot
13 Dec 2023
The dollar ticked up slightly on Wednesday as traders braced for the last Fed meeting this year. US consumer prices unexpectedly rising in November, watering down rate cut expectations.
The pound fell after data showed the UK economy shrank 0.3% in October. The services sector shrank for the first time since July as PM Sunak grappled with below-trend growth.
So far this year, the pound has risen by roughly 4% against the dollar, its best performance since 2019. The BOE is expected to lag behind its peers in cutting rates given stickier inflation.
| Citi (as of 1 Dec) | HSBC (as of 13 Dec) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0852 | 1.1020 | 1.0670 | 1.0965 |
| GBP/USD | 1.2347 | 1.2746 | 1.2453 | 1.2701 |
| USD/CHF | 0.8684 | 0.8957 | 0.8658 | 0.8851 |
| AUD/USD | 0.6522 | 0.6750 | 0.6491 | 0.6658 |
| USD/CAD | 1.3417 | 1.3695 | 1.3473 | 1.3707 |
| USD/JPY | 146.70 | 151.91 | 141.52 | 149.53 |
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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