Summary:
Following strong economic news, the dollar was steady on Friday. US GDP grew at a 2.8% annual rate last quarter, beating expectations.
EBC Forex Snapshot, 26 Jul 2024
The dollar was little changed on Friday after a buoyant economic report. Advance estimates showed that US GDP grew at a 2.8% annualized rate in the last quarter, far better than expected.
Earlier this month, Donald Trump has warned Jay Powell not to cut interest rates before November's presidential vote, but said if elected he would let the Fed chair serve out his term if he was "doing the right thing".
The Canadian dollar rebounded from an eight-week low. Investors see a roughly 60% chance the BOC will cut rates again in September after lowering its policy rate by 25 bps this week.
| Citi (as of 22 Jul) | HSBC (as of 26 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.0981 | 1.0780 | 1.0927 |
| GBP/USD | 1.2860 | 1.3045 | 1.2736 | 1.3005 |
| USD/CHF | 0.8820 | 0.9158 | 0.8727 | 0.8952 |
| AUD/USD | 0.6663 | 0.6871 | 0.6434 | 0.6720 |
| USD/CAD | 1.3589 | 1.3846 | 1.3657 | 1.3919 |
| USD/JPY | 155.07 | 160.21 | 149.97 | 159.86 |
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.
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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.
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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.
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