Summary:
On Wednesday, the dollar weakened despite a brief lift from strong retail sales. Traders' attention shifted to potential September rate cuts.
EBC Forex Snapshot, 17 Jul 2024
The dollar was broadly weaker on Wednesday after a modest but short-lived boost following better-than-expected retail sales data, as traders focused on the prospect of rate cuts as early as September.
The core reading surged 0.9% last month after rising by an unrevised 0.4% in May. Economists now estimate that consumer spending grew at a 2.0% annualised rate in Q2.
The British pound gained a touch after data showed UK headline inflation held at 2% on an annual basis in June against forecasts for a 1.9% increase and the closely-watched services inflation came in at 5.7%.
| Citi (as of 8 Jul) | HSBC (as of 17 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0666 | 1.0916 | 1.0741 | 1.0988 |
| GBP/USD | 1.2616 | 1.2860 | 1.2719 | 1.3103 |
| USD/CHF | 0.8827 | 0.9158 | 0.8881 | 0.9018 |
| AUD/USD | 0.6595 | 0.6847 | 0.6634 | 0.6815 |
| USD/CAD | 1.3577 | 1.3846 | 1.3586 | 1.3755 |
| USD/JPY | 156.23 | 163.40 | 156.33 | 161.17 |
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.
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