Summary:
Fed governor Chris Waller's reassurance about interest rates, despite early-year inflation, steadied the dollar on Thursday.
EBC Forex Snapshot, 28 Mar 2024
The dollar consolidated on Thursday as Fed governor Chris Waller said that he is in no hurry to cut interest rates after hotter inflation data played out in the first two months of the year.
Market expectations for the first rate cut in June have eased somewhat. Current pricing has it at a 60% chance, according to the CME FedWatch tool. The focus will shift to a key inflation report due tomorrow.
The euro was largely unchanged around its one-month low. Five of Germany's economic research institutes slash GDP outlook, citing low domestic demand, and high gas and electricity prices hitting exports.
| Citi (as of 25 Mar) | HSBC (as of 28 Mar) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0695 | 1.1017 | 1.0757 | 1.0937 |
| GBP/USD | 1.2503 | 1.2896 | 1.2509 | 1.2830 |
| USD/CHF | 0.8741 | 0.9112 | 0.8820 | 0.9163 |
| AUD/USD | 0.6443 | 0.6691 | 0.6468 | 0.6633 |
| USD/CAD | 1.3359 | 1.3607 | 1.3451 | 1.3648 |
| USD/JPY | 146.66 | 151.91 | 147.87 | 153.37 |
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.
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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 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.
2024-10-10
