Canadian Dollar Nears Four-Month High
2024-08-22
Summary:
The dollar hovered near one-year lows as Fed minutes signaled upcoming rate cuts. Many officials noted that US payroll gains might be overstated.
EBC Forex Snapshot, 22 Aug 2024
The dollar hovered near one-year lows on Thursday as Fed minutes signalled that interest rate cuts are set to begin in a few weeks' time. On the labour market, "many" officials noted that US payroll gains might be overstated.
Markets are fully pricing in a September cut, which would be the first since the emergency easing in the early days of the Covid crisis. Currency markets see a US easing cycle as having further to run than other countries.
The Canadian dollar traded around its four-month high despite the risk of a railway stoppage. Analysts say the BOC has shifted its focus from suppressing inflation to boosting the economy.
| Citi (as of 19 Aug) | HSBC (as of 21 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.1068 | 1.0893 | 1.1250 |
| GBP/USD | 1.2673 | 1.2946 | 1.2777 | 1.3167 |
| USD/CHF | 0.8333 | 0.8827 | 0.8385 | 0.8741 |
| AUD/USD | 0.6363 | 0.6799 | 0.6474 | 0.6880 |
| USD/CAD | 1.3597 | 1.3946 | 1.3498 | 1.3842 |
| USD/JPY | 145.89 | 150.00 | 140.98 | 150.21 |
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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