Summary:
Sterling fell to a one-month low after a 1% drop as the BOE began cutting rates. The euro stayed near a one-month low despite sticky inflation.
EBC Forex Snapshot, 2 Aug 2024
Sterling stumbled to a fresh one-month low on Friday following a nearly 1% plunge overnight as the Bank Of England kicked off its interest-rate cutting cycle. The euro languished close to a one-month despite of sticky inflation.
Core inflation hit 2.9% in July, versus a Reuters estimate of 2.8%. ECB policymaker Yannis Stournaras raised the risk of a weak euro zone economy sending inflation below the 2% target in an interview published on Thursday.
While the latest UK data has been relatively robust, investors say recent signs of slowing growth and inflation in the eurozone and the US have spurred bets that the British economy could follow a similar trajectory.
| Citi (as of 29 Jul) | HSBC (as of 2 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.0981 | 1.0728 | 1.0900 |
| GBP/USD | 1.2860 | 1.3045 | 1.2621 | 1.2950 |
| USD/CHF | 0.8743 | 0.9050 | 0.8637 | 0.8898 |
| AUD/USD | 0.6465 | 0.6799 | 0.6387 | 0.6698 |
| USD/CAD | 1.3590 | 1.3899 | 1.3704 | 1.3965 |
| USD/JPY | 151.53 | 155.00 | 145.61 | 155.98 |
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.
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
