Summary:
The dollar stayed range-bound Tuesday. Traders expect the Fed to hold steady, start easing in September, and cut rates by 65 bps this year.
EBC Forex Snapshot, 30 Jul 2024
The dollar kept within close ranges on Tuesday. Rates futures traders are betting that the Fed will stand pat on Wednesday, begin easing in September, and cut rates by around 65 bps before the year is out.
The euro slightly gained on mixed pictures of economy. German output unexpectedly shrank in Q2, while France grew marginally more than predicted as the delivery of cruise ship offset weak consumer spending.
The uneven recovery across the region showcase the challenge faced by ECB policymakers as they approach a judgment in September on whether the euro-zone economy is looking fragile enough to justify another rate cut.
| Citi (as of 22 Jul) | HSBC (as of 29 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.0981 | 1.0792 | 1.0935 |
| GBP/USD | 1.2860 | 1.3045 | 1.2750 | 1.3019 |
| USD/CHF | 0.8820 | 0.9158 | 0.8741 | 0.8966 |
| AUD/USD | 0.6663 | 0.6871 | 0.6441 | 0.6727 |
| USD/CAD | 1.3589 | 1.3846 | 1.3663 | 1.3925 |
| USD/JPY | 155.07 | 160.21 | 149.83 | 159.72 |
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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