Summary:
US dollar near multi-week low, 76% odds of a September rate cut per CME Group's FedWatch Tool ahead of Powell's testimony.
EBC Forex Snapshot, 9 Jul 2024
The US dollar hung near a multi-week low on Tuesday as Fed Chair Jerome Powell is ready to testify before Congress. Traders set about 76% odds for a rate cut in September, according to the CME Group's FedWatch Tool.
The euro was little changed while data worsened. German industrial production unexpectedly fell in May, adding to signs that manufacturing in Europe's largest economy will not recover in the coming months.
Investor morale in the euro zone broke an eight-month streak of improvements with a bigger-than-expected decline in July, a survey showed, describing the results as a "bitter setback".
| Citi (as of 2 Jul) | HSBC (as of 9 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0666 | 1.0916 | 1.0709 | 1.0889 |
| GBP/USD | 1.2616 | 1.2860 | 1.2661 | 1.2896 |
| USD/CHF | 0.8827 | 0.9158 | 0.8853 | 0.9073 |
| AUD/USD | 0.6595 | 0.6729 | 0.6648 | 0.6792 |
| USD/CAD | 1.3577 | 1.3846 | 1.3572 | 1.3727 |
| USD/JPY | 156.23 | 163.40 | 158.27 | 162.67 |
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.
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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
