Summary:
The euro and pound rose on Tuesday, boosted by a pause in oil price gains, approaching their recent multi-month highs against the dollar.
EBC Forex Snapshot, 27 Aug 2024
The euro and pound nudged higher on Tuesday, as a pause in the rise in oil prices helped them back towards their multi-month highs against the dollar hit in recent sessions.
Prospective US rate cuts has pressured the dollar for weeks. The euro has been particularly major beneficiaries of the recent bout of the weakness, though may struggle to move higher from here.
San Francisco Fed President Mary Daly said on Monday a 25-bp reduction in borrowing costs next month was likely. The remaining question is whether the central bank will lower interest rates by 25 or 50 bps at the meeting.
| Citi (as of 19 Aug) | HSBC (as of 26 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.1068 | 1.0981 | 1.1300 |
| GBP/USD | 1.2673 | 1.2946 | 1.2837 | 1.3405 |
| USD/CHF | 0.8333 | 0.8827 | 0.8374 | 0.8666 |
| AUD/USD | 0.6363 | 0.6799 | 0.6575 | 0.6903 |
| USD/CAD | 1.3597 | 1.3946 | 1.3384 | 1.3743 |
| USD/JPY | 145.89 | 150.00 | 142.11 | 148.01 |
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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