Summary:
On Thursday, the dollar weakened while pressures on other currencies persisted. Strong data dampened expectations of Fed rate cuts in June.
EBC Forex Snapshot, 18 Apr 2024
The dollar softened on Thursday but pressures on other currencies barely went away. A string of hot data squashed the view that the Fed to start cutting rates in June.
US economic activity expanded slightly from late February through early April and firms signalled they expect inflation pressure to hold steady, a Fed survey showed on Wednesday.
The euro was largely unchanged above its five-month low. ECB President Christine Lagarde said the central bank remains on course to cut interest rates in the near term, subject to any major shocks.
| Citi (as of 15 Apr) | HSBC (as of 16 Apr) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0517 | 1.0865 | 1.0529 | 1.0800 |
| GBP/USD | 1.2337 | 1.2709 | 1.2342 | 1.2628 |
| USD/CHF | 0.8999 | 0.9148 | 0.9023 | 0.9178 |
| AUD/USD | 0.6443 | 0.6668 | 0.6360 | 0.6583 |
| USD/CAD | 1.3478 | 1.3855 | 1.3576 | 1.3896 |
| USD/JPY | 150.88 | 153.39 | 151.90 | 155.54 |
The green numbers in the table indicate that the data has increased compared with the previous time; the red numbers indicate that the data has decreased compared with the previous time; and the black numbers indicate that the data has remained 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.
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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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