Summary:
The US dollar opened lower, continuing its decline post-Fed meeting, signaling potential 2023 rate cuts. The yen stabilized after last week's 2% rise.
EBC Forex Snapshot
18 Dec 2023
The US dollar opened lower this week, extending is fall following the Fed’s meeting that signalled potential rate cuts next year. The yen steadied after rising around 2% last week.
The market mood stayed with futures pricing in a roughly 75% chance the first cut could come as early as March, according to the CME FedWatch tool. The BOJ’s policy meeting is now in focus.
Traders are seeking further clarity on how soon policymakers could phase out its negative interest rate policy. More than 80% of economists in a Reuters poll said the BOJ will begin rate hikes by the end of 2024
| Citi (as of 11 Dec) | HSBC (as of 18 Dec) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0756 | 1.1017 | 1.0738 | 1.1033 |
| GBP/USD | 1.2326 | 1.2733 | 1.2517 | 1.2814 |
| USD/CHF | 0.8667 | 0.8957 | 0.8613 | 0.8805 |
| AUD/USD | 0.6522 | 0.6750 | 0.6570 | 0.6775 |
| USD/CAD | 1.3417 | 1.3695 | 1.3277 | 1.3556 |
| USD/JPY | 142.34 | 147.50 | 139.12 | 147.01 |
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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