Summary:
USD steadied ahead of US inflation data; potential impact on Fed policy. The futures market suggests a 64% chance of rate cuts in March.
EBC Forex Snapshot
10 Jan 2024
The dollar was steady on Wednesday ahead of US inflation data later this week that could influence the Fed's policy. Future market indicates a 64% probability of rate cuts in March.
The Australian dollar edged up despite cooling inflation. The headline consumer price index was 4.3%, the lowest level since Jan 2022. Economists had forecast the reading to be 4.4%.
New bank loans in China likely rose in Dec, bringing 2023 lending to a new record high, a Reuters poll showed. Analysts expect more easing early this year to support the fragile economy.
| Citi (as of 2 Jan) | HSBC (as of 10 Jan) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0833 | 1.1150 | 1.0824 | 1.1088 |
| GBP/USD | 1.2527 | 1.2848 | 1.2599 | 1.2819 |
| USD/CHF | 0.8333 | 0.8667 | 0.8358 | 0.8659 |
| AUD/USD | 0.6691 | 0.6900 | 0.6590 | 0.6822 |
| USD/CAD | 1.3114 | 1.3387 | 1.3237 | 1.3477 |
| USD/JPY | 139.48 | 144.94 | 141.15 | 146.89 |
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.
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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.
2024-10-10
