Summary:
The dollar hit a yearly low against the euro, with traders eyeing US payroll revisions. US bond yields fell to their lowest since early August.
EBC Forex Snapshot, 21 Aug 2024
The dollar slipped to its lowest this year versus the euro on Wednesday as traders braced for potentially crucial revisions to US payrolls data later in the day. US bond yields hit the lowest since early August.
While prices for consumer goods remain significantly elevated, the low unemployment rate has been driving wage increases, particularly among low-wage Americans.
Eurozone inflation was confirmed at 2.6% year-on-year in July. Markets see a 90% chance of a 25 bps cut by the ECB in September and see at least one more move before the end of the year.
| Citi (as of 19 Aug) | HSBC (as of 21 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.1068 | 1.0893 | 1.1250 |
| GBP/USD | 1.2673 | 1.2946 | 1.2777 | 1.3167 |
| USD/CHF | 0.8333 | 0.8827 | 0.8385 | 0.8741 |
| AUD/USD | 0.6363 | 0.6799 | 0.6474 | 0.6880 |
| USD/CAD | 1.3597 | 1.3946 | 1.3498 | 1.3842 |
| USD/JPY | 145.89 | 150.00 | 140.98 | 150.21 |
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.
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