Summary:
Strong US data raised doubts on rate cuts, lifting the dollar and pushing the yen to a 30-year low. The Aussie slipped on weak inflation.
EBC Forex Snapshot, 27 Mar 2024
The dollar rose on Wednesday as more strong US economic data raise doubt over the likelihood of interest rate cuts, sending the yen to a three-decade low. The Aussie slipped as inflation fell short of expectations.
CPI rose only 3.4% last month, close to the pace of the increases in January. The figure offers an indication of how much interest rates are squeezing demand in the economy.
An aggregate gauge of investor positioning in the Aussie — net non-commercial futures and options positions — showed the most bearish bias since at least 1995, according to CFTC data for the week to 19 March.
| Citi (as of 18 Mar) | HSBC (as of 27 Mar) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0695 | 1.1017 | 1.0760 | 1.0940 |
| GBP/USD | 1.2503 | 1.2896 | 1.2500 | 1.2821 |
| USD/CHF | 0.8741 | 0.9000 | 0.8830 | 0.9145 |
| AUD/USD | 0.6443 | 0.6691 | 0.6467 | 0.6632 |
| USD/CAD | 1.3359 | 1.3607 | 1.3461 | 1.3658 |
| USD/JPY | 146.26 | 149.21 | 148.06 | 153.45 |
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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