Summary:
The dollar moved sideways Wednesday, easing pressure on other currencies after last week's rally, while the loonie lingered near a seven-week low.
EBC Forex Snapshot, 9 Oct 2024
The dollar drifted sideways on Wednesday, giving some relief to other major currencies after a sharp rally to a seven-week high last week. Loonie languished around a seven-week low.
Investors now have about an 85% chance of a 25-bp reduction priced in at the next meeting, as well as a slim probability the Fed will leave rates unchanged, the CME FedWatch tool showed.
Oil is one of Canada's major exports, which declined in August, contributing to a widening in the trade deficit to C$1.1 billion. Analysts had forecast a C$500 million deficit.
| Citi (as of 7 Oct) | HSBC (as of 8 Oct) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0951 | 1.1214 | 1.0878 | 1.1141 |
| GBP/USD | 1.2923 | 1.3266 | 1.2948 | 1.3326 |
| USD/CHF | 0.8375 | 0.8749 | 0.8421 | 0.8639 |
| AUD/USD | 0.6757 | 0.6950 | 0.6681 | 0.6888 |
| USD/CAD | 1.3420 | 1.3792 | 1.3474 | 1.3703 |
| USD/JPY | 139.50 | 149.00 | 142.70 | 151.40 |
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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