Summary:
Monday saw the dollar gain ground ahead of a busy week packed with crucial economic updates, offering insight into global interest rate trends.
EBC Forex Snapshot, 26 Feb 2024
The dollar was on the front foot on Monday ahead of a packed week filled with key economic releases that will provide further clues on the global interest rate outlook.
Markets are currently pricing in just about a 20% chance that the Fed will begin easing rates in May, as both PPI and CPI came stronger than expected in January, according to the CME FedWatch tool.
The Japanese currency hovered around 150 per dollar. The latest CFTC data shows short positions on the yen have jumped to roughly $10 billion as of last week, the largest since November.
| Citi (as of 19 Feb) | HSBC (as of 23 Feb) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0694 | 1.1017 | 1.0715 | 1.0910 |
| GBP/USD | 1.2476 | 1.2827 | 1.2554 | 1.2736 |
| USD/CHF | 0.8551 | 0.9013 | 0.8696 | 0.8895 |
| AUD/USD | 0.6443 | 0.6624 | 0.6464 | 0.6618 |
| USD/CAD | 1.3379 | 1.3586 | 1.3399 | 1.3574 |
| USD/JPY | 146.09 | 151.91 | 148.46 | 151.72 |
The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained 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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