Summary:
The euro rose on Tuesday but faced its biggest monthly drop since January. Eurozone business surged in April with strong service sector growth.
EBC Forex Snapshot, 23 Apr 2024
The euro firmed on Tuesday but was on track for its biggest monthly drop since January. Business activity in the eurozone picked up strongly in April thanks to robust growth in the service sector.
The HCOB Flash Eurozone Composite PMI rose to 54.1, the highest in 11 months. Expectations remain for the ECB to start cutting by mid-year, putting the single currency on the back foot against the US dollar.
Markets are pricing in a 46% chance of the Fed's first rate cut starting in September, with November not far behind at 42%, according to the CME FedWatch Tool.
| Citi (as of 15 Apr) | HSBC (as of 22 Apr) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0517 | 1.0865 | 1.0540 | 1.0826 |
| GBP/USD | 1.2337 | 1.2709 | 1.2253 | 1.2599 |
| USD/CHF | 0.8999 | 0.9148 | 0.9014 | 0.9169 |
| AUD/USD | 0.6443 | 0.6668 | 0.6303 | 0.6587 |
| USD/CAD | 1.3478 | 1.3855 | 1.3537 | 1.3908 |
| USD/JPY | 150.88 | 153.39 | 152.03 | 156.01 |
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.
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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