Summary:
The dollar rose from five-week lows on Tuesday as investors weighed rate-cut prospects after Fed Chair Powell's comments and Trump's re-election odds.
EBC Forex Snapshot, 16 Jul 2024
The dollar crept off five-week lows on Tuesday as investors weighed the potential for rate cuts following comments by Fed Chair Powell and rising odds of Donald Trump's re-election.
Powell mentioned that the second quarter's three inflation readings "add somewhat to confidence." Markets now anticipate 68 basis points of easing this year, with a rate cut in September fully priced in, according to the CME FedWatch tool.
The euro was just shy of a four-month high touched on Monday. The focus will be on comments from chief Christine Lagarde to ascertain the timing of the next rate cut at the ECB's policy meeting on Thursday.
| Citi (as of 8 Jul) | HSBC (as of 16 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0666 | 1.0916 | 1.0731 | 1.0989 |
| GBP/USD | 1.2616 | 1.2860 | 1.2719 | 1.3103 |
| USD/CHF | 0.8827 | 0.9158 | 0.8896 | 0.9033 |
| AUD/USD | 0.6595 | 0.6847 | 0.6651 | 0.6832 |
| USD/CAD | 1.3577 | 1.3846 | 1.3594 | 1.3763 |
| USD/JPY | 156.23 | 163.40 | 156.11 | 160.95 |
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
