Dollar Stays Near Eight-Week Low
2024-06-07
Summary:
The dollar hovered near an 8-week low Friday, awaiting a key US jobs report for Fed policy clues. Markets expect a 50 bps cut by year-end.
EBC Forex Snapshot, 7 Jun 2024
The dollar hovered close to an eight-week low on Friday ahead of a crucial US jobs report that could provide clues on the Fed's monetary path. Markets currently price in 50 bps of cuts by year end.
The euro held on to overnight gains after the European Central Bank reduced rates in a well-telegraphed move - the first reduction in five years. Inflation is projected to reach 2.5% in 2024, higher than the previous forecast for 2.3%.
Policymakers offered few hints about the next move. Analysts say the decision is unlikely to be followed by a series of fast cuts as sticky inflation will limit the room for additional loosening.
| Citi (as of 3 Jun) | HSBC (as of 7 Jun) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0788 | 1.0895 | 1.0811 | 1.0940 |
| GBP/USD | 1.2300 | 1.2803 | 1.2704 | 1.2845 |
| USD/CHF | 0.8988 | 0.9158 | 0.8796 | 0.9073 |
| AUD/USD | 0.6563 | 0.6729 | 0.6599 | 0.6720 |
| USD/CAD | 1.3577 | 1.3846 | 1.3593 | 1.3743 |
| USD/JPY | 152.12 | 158.44 | 154.17 | 157.40 |
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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