Summary:
The dollar lagged on Wednesday as US producer prices slowed and service costs fell the most in nearly 1.5 years, signaling easing price pressures.
EBC Forex Snapshot, 14 Aug 2024
The dollar remained on the back foot on Wednesday as a US producer prices slowed. The cost of services fell by the most in nearly 1.5 years – a sign of waning price pressures.
With oil prices recently declining amid expectations of softening demand in China, the rebound in energy prices is likely to be short-lived. That has added to hopes of sizable interest rates within the year.
The yen sapped amid political incident. Japanese Prime Minister Fumio Kishida's decision to not run for reelection in his party's leadership race next month had little effect on markets, analysts said.
| Citi (as of 5 Aug) | HSBC (as of 14 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.0948 | 1.0842 | 1.1075 |
| GBP/USD | 1.2613 | 1.2894 | 1.2708 | 1.2961 |
| USD/CHF | 0.8551 | 0.8827 | 0.8426 | 0.8871 |
| AUD/USD | 0.6466 | 0.6653 | 0.6438 | 0.6731 |
| USD/CAD | 1.3590 | 1.3899 | 1.3621 | 1.3866 |
| USD/JPY | 145.37 | 150.00 | 140.58 | 154.13 |
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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