Euro Pulls Back from 13-Month High
2024-08-29
Summary:
The dollar steadied on Thursday, recouping some losses. Markets fully expect a 25-bp Fed rate cut next month, with a 34.5% chance of a 50-bp cut.
EBC Forex Snapshot, 29 Aug 2024
The dollar steadied on Thursday as it nursed some of its earlier losses. Markets have fully priced in a 25-bp rate cut from the Fed next month, with a 34.5% chance of a 50-bp reduction, according to the CME FedWatch tool.
The euro was off its 13-month high as the GfK consumer climate index hit its lowest level since May. The German consumer remains deeply pessimistic about economic conditions.
Europe is suffering from an innovation deficit and weak productivity, putting the region's economy on a path to stagnation, according to Nobel laureate Michael Spence.
| Citi (as of 19 Aug) | HSBC (as of 29 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.1068 | 1.0952 | 1.1245 |
| GBP/USD | 1.2673 | 1.2946 | 1.2853 | 1.3396 |
| USD/CHF | 0.8333 | 0.8827 | 0.8303 | 0.8644 |
| AUD/USD | 0.6363 | 0.6799 | 0.6628 | 0.6877 |
| USD/CAD | 1.3597 | 1.3946 | 1.3362 | 1.3674 |
| USD/JPY | 145.89 | 150.00 | 142.20 | 148.16 |
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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