Summary:
With little economic data this week, major currencies stayed stable on Wednesday, but the pound rose on hotter-than-expected UK inflation data.
EBC Forex Snapshot, 22 May 2024
With little to drive the market in terms of economic data this week, most major currencies continued to move in a tight range on Wednesday. The pound jumped after data showed hotter-than-expected UK inflation.
British consumer prices rose by 2.3% in annual terms in April compared to the forecast for 2.1%. The figure close to the target leaves the chances of a June rate cut by unchanged at around 50%.
That positions the ECB as the next major central bank most likely to start bringing down rates, as its policymakers continue to suggest it would take a major shock to prevent a June cut.
| Citi (as of 13 May) | HSBC (as of 22 May) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0601 | 1.0885 | 1.0720 | 1.0941 |
| GBP/USD | 1.2300 | 1.2709 | 1.2525 | 1.2808 |
| USD/CHF | 0.8999 | 0.9244 | 0.9007 | 0.9194 |
| AUD/USD | 0.6443 | 0.6668 | 0.6547 | 0.6748 |
| USD/CAD | 1.3478 | 1.3846 | 1.3572 | 1.3747 |
| USD/JPY | 152.12 | 157.68 | 153.08 | 157.98 |
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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