Dollar Rises from Five-Week Low

2024-07-16
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.

EURUSD

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.

Citibank vs. HSBC Currency Pair Data Comparison

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.


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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