The dollar hit a 1-month low vs. the euro before the US inflation report. Q1's high consumer prices spur a Fed rate cut reassessment.
EBC Forex Snapshot, 15 May 2024
The dollar dipped to a one-month low against the euro on Wednesday ahead of a key US inflation report. Higher-than-expected consumer prices in Q1 were the driving force for a sharp repricing of Fed's rate cuts.
Fed Chair Jerome Powell gave a bullish assessment on Tuesday with an outlook for continued above-trend growth and confidence in falling inflation remains largely intact.
Some ECB Bank officials deemed it appropriate to cut interest rates when they convened last month, an account of their meeting showed. But views remain divided regarding how quickly to lower borrowing costs.
Citi (as of 6 May) | HSBC (as of 14 May) | |||
support | resistance | support | resistance | |
EUR/USD | 1.0601 | 1.0885 | 1.0687 | 1.0851 |
GBP/USD | 1.2300 | 1.2709 | 1.2440 | 1.2654 |
USD/CHF | 0.8999 | 0.9244 | 0.8983 | 0.9202 |
AUD/USD | 0.6443 | 0.6668 | 0.6498 | 0.6682 |
USD/CAD | 1.3478 | 1.3846 | 1.3587 | 1.3763 |
USD/JPY | 151.86 | 157.68 | 152.02 | 160.20 |
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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On Friday, the US dollar fell to a one-week low as mixed job market signals emerged before key payroll data likely to influence Fed policy.
2024-09-06The dollar fell Thursday on US economic worries, with the yen rising on safe-haven demand. Traders see a 44% chance of a 50-bp cut this month.
2024-09-05Safe-haven currencies surged Wednesday as Wall Street and Asian stocks fell sharply, leading to losses in commodity currencies.
2024-09-04