Euro Stabilizes After Rebounding from 2-Month Low
2024-10-11
Summary:
The US dollar dipped from a two-month high but is set for a second consecutive weekly gain as weak labor market signals support faster Fed rate cuts.
EBC Forex Snapshot, 11 Oct 2024
The US dollar experienced a decline from its two-month peak but remained poised for a second consecutive weekly gain. This movement was driven by growing speculation that the Federal Reserve may expedite rate cuts following signs of labor market instability.
A sharp increase in new unemployment claims was recorded last week, with factors such as Hurricane Helene and furloughs at Boeing, due to the ongoing strike, contributing to the rise. These developments signal economic disruptions that may prompt the Fed to reconsider its monetary policy timeline.
The euro steadied after bouncing back from a two-month low. Several ECB policymakers argued their case for another interest rate cut next week though turmoil in the Middle East fuels volatility in energy costs.
| Citi (as of 7 Oct) | HSBC (as of 10 Oct) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0951 | 1.1214 | 1.0846 | 1.1123 |
| GBP/USD | 1.2923 | 1.3266 | 1.2937 | 1.3319 |
| USD/CHF | 0.8375 | 0.8749 | 0.8465 | 0.8679 |
| AUD/USD | 0.6757 | 0.6950 | 0.6634 | 0.6871 |
| USD/CAD | 1.3420 | 1.3792 | 1.3513 | 1.3813 |
| USD/JPY | 139.50 | 149.00 | 144.16 | 151.89 |
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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