Friday saw the dollar above a four-month low, awaiting a crucial inflation report to gauge the Fed's potential interest rate cuts in the coming year.
EBC Forex Snapshot
22 Dec 2023
The dollar traded above a more than four-month low on Friday, with a key inflation report due later in the day that could offer clarity on how much room the Fed has to cut interest rates next year.
The yen was little changed though data that showed Japan's core consumer prices rose 2.5% in Nov from a year earlier. That marked the slowest gain since July 2022.
While the central bank is still expected to reverse its ultra-dovish stance in 2024, the softer inflation reading brings more uncertainty over the timing of the move.
Citi (as of 11 Dec) | HSBC (as of 21 Dec) | |||
support | resistance | support | resistance | |
EUR/USD | 1.0756 | 1.1017 | 1.0771 | 1.1057 |
GBP/USD | 1.2326 | 1.2733 | 1.2491 | 1.2788 |
USD/CHF | 0.8667 | 0.8957 | 0.8538 | 0.8767 |
AUD/USD | 0.6522 | 0.6750 | 0.6575 | 0.6831 |
USD/CAD | 1.3417 | 1.3695 | 1.3244 | 1.3554 |
USD/JPY | 142.34 | 147.50 | 140.22 | 147.62 |
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