Summary:
Thursday saw the dollar near a one-week peak after its strongest day this month, spurred by Fed minutes hinting at potential rate hikes ahead.
EBC Forex Snapshot, 23 May 2024
The dollar hovered near a one-week high on Thursday following its best day this month after minutes of the last Fed meeting revealed some officials kept the door open to more rate hikes.
The yen fell to the lowest since 1 May overnight in the face of possible interventions. Japan’s 10-year sovereign bond yield reached 1% for the first time since the rollout of stimulus measures in 2013.
Nearly half of Japanese firms find the yen's slide beyond 155 to the dollar harmful to their business, roughly double the percentage of those who see the currency's weakness as a positive, a Reuters survey showed.
| Citi (as of 20 May) | HSBC (as of 23 May) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0793 | 1.0895 | 1.0731 | 1.0903 |
| GBP/USD | 1.2300 | 1.2712 | 1.2518 | 1.2836 |
| USD/CHF | 0.8988 | 0.9244 | 0.9042 | 0.9214 |
| AUD/USD | 0.6443 | 0.6729 | 0.6545 | 0.6703 |
| USD/CAD | 1.3478 | 1.3846 | 1.3599 | 1.3774 |
| USD/JPY | 152.12 | 157.68 | 153.47 | 158.46 |
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.
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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.
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