Summary:
Consumer prices fell below 3% for the first time since 2021, causing the dollar to weaken. The pound rose with 0.6% UK Q2 GDP growth.
EBC Forex Snapshot, 15 Aug 2024
The dollar was soft on Thursday after data showing consumer prices slowed to below 3% for the first time since early 2021., Meanwhile the pound strengthened as UK economy grew 0.6% in Q2.
The figures add to the mild increase in producer prices in July in suggesting that inflation is on a downward trend, although traders are now anticipating the Fed to be not as aggressive on rate cuts as hoped.
The British GDP has recorded slight growth almost every month so far this year. Institutions including the IMF, Goldman Sachs and the BOE have all hiked their growth forecasts for it in recent months.
| Citi (as of 12 Aug) | HSBC (as of 14 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.1017 | 1.0842 | 1.1075 |
| GBP/USD | 1.2613 | 1.2894 | 1.2708 | 1.2961 |
| USD/CHF | 0.8333 | 0.8827 | 0.8426 | 0.8871 |
| AUD/USD | 0.6363 | 0.6653 | 0.6438 | 0.6731 |
| USD/CAD | 1.3590 | 1.3977 | 1.3621 | 1.3866 |
| USD/JPY | 141.70 | 147.90 | 140.58 | 154.13 |
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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