Summary:
The dollar dipped on political concerns. The Canadian dollar rose to multi-week highs after the BOC predicted growth amid easing inflation.
EBC Forex Snapshot, 25 Jun 2024
The dollar eased slightly on Tuesday with politics at the forefront of investors' minds. Loonie strengthened to its highest in weeks after the BOC said the economy could grow due to cooling inflation.
There is enough slack in the Canadian labour market to allow for growth and the creation of more jobs even as the inflation rate continues to decline, said BOC Governor Tiff Macklem.
Investors see a 72% chance that the central bank would cut interest rates further at the next policy decision on July 24, swaps market data shows. Earlier this month, it became the first G7 central bank to ease policy.
| Citi (as of 17 Jun) | HSBC (as of 24 Jun) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0688 | 1.0981 | 1.0600 | 1.0849 |
| GBP/USD | 1.2612 | 1.2860 | 1.2557 | 1.2797 |
| USD/CHF | 0.8885 | 0.9158 | 0.8843 | 0.9012 |
| AUD/USD | 0.6564 | 0.6729 | 0.6574 | 0.6704 |
| USD/CAD | 1.3577 | 1.3846 | 1.3611 | 1.3784 |
| USD/JPY | 151.86 | 158.26 | 156.24 | 161.63 |
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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