Summary:
On Thursday, the dollar dropped as Fed Chair Jerome Powell suggested a nearing interest rate cut, contingent on further inflation declines.
EBC Forex Snapshot, 11 Jul 2024
Fed Hints at Rate Cut, UK Growth Boosts Sterling
The dollar dipped on Thursday after Fed Chair Jerome Powell indicated in his testimony that the central bank is getting closer to cutting interest rates but wants to see further declines in inflation.
Sterling rose to its highest in four months, after data showed the UK economy grew more quickly than expected in May, which would lower the chances of an August rate cut.
Bank Of Europe Chief Economist Huw Pill said that that services inflation and wage growth still "point to an uncomfortable strength in those underlying inflation dynamics," which may indicate a reluctance to move just yet.
| Citi (as of 8 Jul) | HSBC (as of 10 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0666 | 1.0916 | 1.0703 | 1.0883 |
| GBP/USD | 1.2616 | 1.2860 | 1.2647 | 1.2882 |
| USD/CHF | 0.8827 | 0.9158 | 0.8855 | 0.9075 |
| AUD/USD | 0.6595 | 0.6847 | 0.6651 | 0.6795 |
| USD/CAD | 1.3577 | 1.3846 | 1.3571 | 1.3726 |
| USD/JPY | 156.23 | 163.40 | 158.82 | 162.90 |
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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The dollar held gains and rose slightly in Asia Monday as Japan's holiday cut liquidity, focusing attention on China's disappointing stimulus.
2024-10-14
The US dollar dipped from a two-month high but is set for a second consecutive weekly gain as weak labor market signals support faster Fed rate cuts.
2024-10-11
The US hovered near a two-month high on Thursday as markets grew confident in the Fed's patient monetary policy ahead of a key inflation report.
2024-10-10
