Summary:
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.
EBC Forex Snapshot, 10 Oct 2024
The U.S. dollar remained close to a two-month high on Thursday as market participants grew increasingly confident that the Federal Reserve will adopt a patient approach to monetary policy. This comes ahead of a key inflation report that could further influence the Fed's next steps.
The minutes from the September FOMC meeting revealed support for a gradual pace of rate cuts, although there were divisions among policymakers. While most officials agreed on a cautious approach, some favored a more aggressive quarter-point rate cut. This divergence highlights the challenges the Fed faces as it seeks to balance inflation control with economic growth.
The Aussie rallied from its weakest since mid-Sep, after a stimulus announcement by China's state planner fell flat. Iron ore has been whipsawed in recent sessions after reclaiming the $100 level.
| Citi (as of 7 Oct) | HSBC (as of 10 Oct) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0951 | 1.1214 | 1.0846 | 1.1123 |
| GBP/USD | 1.2923 | 1.3266 | 1.2937 | 1.3319 |
| USD/CHF | 0.8375 | 0.8749 | 0.8465 | 0.8679 |
| AUD/USD | 0.6757 | 0.6950 | 0.6634 | 0.6871 |
| USD/CAD | 1.3420 | 1.3792 | 1.3513 | 1.3813 |
| USD/JPY | 139.50 | 149.00 | 144.16 | 151.89 |
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 dollar moved sideways Wednesday, easing pressure on other currencies after last week's rally, while the loonie lingered near a seven-week low.
2024-10-09
