Summary:
On Wednesday, the dollar weakened as Fed Chair Jerome Powell's dovish remarks, despite a strong jobs report, pushed Treasury yields down.
EBC Forex Snapshot, 3 Jul 2024
The dollar remained on the back foot on Wednesday after dovish comments from Fed Chair Jerome Powell following a strong domestic jobs reports sent Treasury yields lower.
US job openings rose in May after posting outsized declines in the prior two months, but data or April was revised lower. The trend remained consistent with an easing in labour market conditions.
The euro was flat. Euro zone inflation eased last month but a crucial services component remained stubbornly high, fuelling concern that domestic price pressures could stay at elevated levels.
| Citi (as of 24 Jun) | HSBC (as of 3 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0668 | 1.0916 | 1.0667 | 1.0819 |
| GBP/USD | 1.2619 | 1.2860 | 1.2594 | 1.2791 |
| USD/CHF | 0.8827 | 0.9158 | 0.8891 | 0.9116 |
| AUD/USD | 0.6564 | 0.6729 | 0.6603 | 0.6708 |
| USD/CAD | 1.3577 | 1.3846 | 1.3608 | 1.3761 |
| USD/JPY | 153.60 | 160.00 | 158.09 | 163.27 |
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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