Summary:
Tuesday: The dollar is hesitant; investors digest US payroll. Yen near 34-year lows; market wary of Japanese intervention.
EBC Forex Snapshot, 9 Apr 2024
The dollar was tentative on Tuesday as investors digested US payroll data. The yen dipped to near 34-year lows, with the market on alert for any potential action from Japanese authorities to support the currency.
Treasury yields have climbed as traders pare back bets on the pace and scale of Fed rate cuts expected later this year, with the two-year yield hitting a more than four-month high of 4.8010%.
BOJ Governor Kazuo Ueda said the central bank must consider whittling down stimulus further if inflation continues to accelerate, signalling the chance of another rate hike later this year in line with market bets.
| Citi (as of 25 Mar) | HSBC (as of 8 Apr) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0695 | 1.1017 | 1.0725 | 1.0944 |
| GBP/USD | 1.2503 | 1.2896 | 1.2514 | 1.2781 |
| USD/CHF | 0.8741 | 0.9112 | 0.8869 | 0.9127 |
| AUD/USD | 0.6443 | 0.6691 | 0.6493 | 0.6648 |
| USD/CAD | 1.3359 | 1.3607 | 1.3478 | 1.3672 |
| USD/JPY | 146.66 | 151.91 | 149.76 | 152.71 |
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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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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