Summary:
The dollar hovered near a four-month high Wed. Traders anticipate Fed rate cuts of around 70 bps this year, with easing likely beginning in July.
EBC Forex Snapshot, 3 Apr 2024
The dollar held near an over four-month peak on Wednesday. Traders now expect just about 70 bps worth of rate cuts by the Fed this year, with the start of easing fully priced in for July.
The yen languished close to its lowest its decades although data showed Japan service sector activity expanded the fastest in 7 months in March – the 19th consecutive month of increase.
The BOJ's tankan survey released on Monday showed optimism in Japan's service sector climbed to a 33-year high in the first quarter on booming tourism and rising profits from price hikes.
| Citi (as of 25 Mar) | HSBC (as of 3 Apr) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0695 | 1.1017 | 1.0676 | 1.0907 |
| GBP/USD | 1.2503 | 1.2896 | 1.2468 | 1.2754 |
| USD/CHF | 0.8741 | 0.9112 | 0.8875 | 0.9185 |
| AUD/USD | 0.6443 | 0.6691 | 0.6453 | 0.6608 |
| USD/CAD | 1.3359 | 1.3607 | 1.3473 | 1.3634 |
| USD/JPY | 146.66 | 151.91 | 148.66 | 153.21 |
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.
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
