The Euro Traded Close to the August High
2024-09-25
Summary:
The dollar weakened as China's stimulus lifted risk appetite and expectations grew for a significant US rate cut in November.
EBC Forex Snapshot, 25 Sep 2024
The dollar came under pressure on Wednesday after China's aggressive stimulus moves buoyed risk appetite, with growing bets of another outsized US rate cut in November adding to headwinds for the greenback.
Markets are now pricing in a 59.5% chance of a 50-bp rate cut at the Fed's next policy meeting, according to the CME FedWatch tool. Data showed US consumer confidence unexpectedly fell in September.
The euro traded close to the August high. The German economy will recover as high inflation and interest rates fade, but the country still needs major reforms, Bundesbank President Joachim Nagel said.
| Citi (as of 16 Sep) | HSBC (as of 25 Sep) | |||
| Support | Resistance | Support | Resistance | |
| EUR/USD | 1.0857 | 1.1202 | 1.1056 | 1.1248 |
| GBP/USD | 1.2812 | 1.3266 | 1.3131 | 1.3561 |
| USD/CHF | 0.8375 | 0.8763 | 0.8355 | 0.8530 |
| AUD/USD | 0.6618 | 0.6871 | 0.6705 | 0.6993 |
| USD/CAD | 1.3441 | 1.3792 | 1.3350 | 1.3579 |
| USD/JPY | 140.25 | 147.13 | 140.29 | 145.51 |
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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