Summary:
Thursday saw the dollar near a 3-month low, poised for its largest monthly drop in a year. Investors bet the Fed won't raise rates further.
EBC Forex Snapshot
30 Nov 2023
The dollar was stuck near a three-month low on Thursday and was set to post its biggest monthly decline in a year as investors ramped up bets that the Fed is done with rate hikes.
US GDP increased at a 5.2% annualised rate last quarter, revised up from the previously reported 4.9% pace. That was the fastest pace expansion since the fourth quarter of 2021.
The yen traded around a 2.5-month high against the dollar. Japan board member Toyoaki Nakamura said on Thursday the central bank will likely need some more time before phasing out its massive stimulus.
| Citi (as of 20 Nov) | HSBC (as of 30 Nov) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0517 | 1.0945 | 1.0742 | 1.1105 |
| GBP/USD | 1.2037 | 1.2525 | 1.2341 | 1.2890 |
| USD/CHF | 0.8745 | 0.9338 | 0.8621 | 0.8955 |
| AUD/USD | 0.6340 | 0.6520 | 0.6411 | 0.6750 |
| USD/CAD | 1.3640 | 1.3899 | 1.3467 | 1.3782 |
| USD/JPY | 149.21 | 151.91 | 145.29 | 150.56 |
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.
The dollar held gains and rose slightly in Asia Monday as Japan's holiday cut liquidity, focusing attention on China's disappointing stimulus.
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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.
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