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.
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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