Summary:
In early Asian trading, the dollar weakened on data indicating a cooling labor market. The pound rebounded from its lowest point since April 24.
EBC Forex Snapshot, 10 May 2024
The dollar had a soft tone in early Asian trading on Friday on the back of soft data showing further signs of a cooling labour market. Sterling recovered from the lowest level since 24 April.
Initial filings for unemployment benefits in the US have hit their highest level since late August 2023. The increase follows a weaker-than-expected NFP report which fuelled rate cut expectations.
The BOE held its benchmark interest rate steady as expected, but more officials on the MPC backed a rate cut. New forecasts project that price pressures will fall below the target within two years.
| Citi (as of 6 May) | HSBC (as of 10 May) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0601 | 1.0885 | 1.0665 | 1.0855 |
| GBP/USD | 1.2300 | 1.2709 | 1.2334 | 1.2671 |
| USD/CHF | 0.8999 | 0.9244 | 0.8967 | 0.9186 |
| AUD/USD | 0.6443 | 0.6668 | 0.6468 | 0.6709 |
| USD/CAD | 1.3478 | 1.3846 | 1.3594 | 1.3770 |
| USD/JPY | 151.86 | 157.68 | 151.53 | 159.71 |
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.
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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