Wednesday's weak dollar reflected lower-than-expected US inflation, fueling speculation that the Fed's tightening cycle has peaked.
EBC Forex Snapshot
15 Nov 2023
The dollar sputtered on Wednesday as a lower-than-expected US inflation reading bolstered bets that the Fed has reached the end of its monetary tightening cycle.
Markets ruled out the possibility of another rate hike next month while bets of a rate cut in May next year increased to around 50%, according to the CME Group’s FedWatch Tool.
Sterling eased after data showed British inflation cooled more than forecast
in October. CPI rose by 4.6% in Oct, the lowest level in two years, from Sep’s
6.7%.
Citi (as of 6 Nov) | HSBC (as of 15 Nov) | |||
support | resistance | support | resistance | |
EUR/USD | 1.0448 | 1.0737 | 1.0535 | 1.0776 |
GBP/USD | 1.2037 | 1.2448 | 1.2050 | 1.2410 |
USD/CHF | 0.8745 | 0.9338 | 0.8905 | 0.9131 |
AUD/USD | 0.6400 | 0.6599 | 0.6248 | 0.6502 |
USD/CAD | 1.3569 | 1.3899 | 1.3656 | 1.3928 |
USD/JPY | 147.43 | 151.95 | 149.51 | 152.46 |
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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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