Summary:
The dollar rose Wednesday after Fed Chair Powell said a rate cut won't happen until the Fed is confident inflation is heading to the 2% target.
EBC Forex Snapshot, 10 Jul 2024
The dollar was on the front foot on Wednesday after Fed Chair Jerome Powell said a rate cut is not appropriate until the Fed gains "greater confidence" that inflation is headed toward the 2% target.
Traders now have around 73% odds for a rate cut by September, CME FedWatch tool showed, with a second reduction mostly priced in by December. The Swiss franc rallied after falling for two straight days.
Swiss inflation unexpectedly eased last month. Consumer prices rose 1.3% from a year ago, less than economists estimated and down from the fastest clip this year.
| Citi (as of 2 Jul) | HSBC (as of 10 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0666 | 1.0916 | 1.0703 | 1.0883 |
| GBP/USD | 1.2616 | 1.2860 | 1.2647 | 1.2882 |
| USD/CHF | 0.8827 | 0.9158 | 0.8855 | 0.9075 |
| AUD/USD | 0.6595 | 0.6729 | 0.6651 | 0.6795 |
| USD/CAD | 1.3577 | 1.3846 | 1.3571 | 1.3726 |
| USD/JPY | 156.23 | 163.40 | 158.82 | 162.90 |
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.
2024-10-14
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.
2024-10-11
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.
2024-10-10
