Summary:
Dollar dropped Tuesday, with markets eyeing upcoming economic data. Expectations for rate cut shifted to June from May, per CME's FedWatch Tool.
EBC Forex Snapshot, 27 Feb 2024
The dollar fell on Tuesday, as markets looked ahead to a week of economic data. Markets have recently pushed back expectations for a cut to June from May, CME's FedWatch Tool showed.
Sterling volatility has hit a four-year low, reflecting the degree of investor complacency and the currency's steady performance. The BOE is expected to act later than the Fed and the ECB this year.
speculators have trimmed their bullish positions in the pound for the first time in eight weeks, suggesting that they may be on the hunt for a new catalyst to give the currency a bit of fresh pep.
| Citi (as of 19 Feb) | HSBC (as of 27 Feb) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0694 | 1.1017 | 1.0731 | 1.0926 |
| GBP/USD | 1.2476 | 1.2827 | 1.2573 | 1.2750 |
| USD/CHF | 0.8551 | 0.9013 | 0.8694 | 0.8893 |
| AUD/USD | 0.6443 | 0.6624 | 0.6456 | 0.6610 |
| USD/CAD | 1.3379 | 1.3586 | 1.3417 | 1.3592 |
| USD/JPY | 146.09 | 151.91 | 148.58 | 151.84 |
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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