Summary:
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.
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.
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
