Summary:
On Friday, the US dollar neared three-week lows ahead of payrolls, while the pound held strong with Labour poised for a UK election landslide.
EBC Forex Snapshot, 5 Jul 2024
The US dollar was hovering near three-week lows on Friday ahead of payrolls data, while the pound was firm as the Labour party looked set to win a massive majority in the UK general election.
Centre-left Labour was on course to capture 410 of the 650 seats in parliament, affording investors some much-needed certainty after years of market volatility under the Conservatives.
Markets are also pricing in potentially two rate cuts this year, although the Fed last month forecast just one rate cut for 2024. Fed officials at their June meeting still struck a cautious tone, minutes showed.
| Citi (as of 2 Jul) | HSBC (as of 5 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0666 | 1.0916 | 1.0711 | 1.0863 |
| GBP/USD | 1.2616 | 1.2860 | 1.2652 | 1.2819 |
| USD/CHF | 0.8827 | 0.9158 | 0.8867 | 0.9093 |
| AUD/USD | 0.6595 | 0.6729 | 0.6629 | 0.6779 |
| USD/CAD | 1.3577 | 1.3846 | 1.3557 | 1.3716 |
| USD/JPY | 156.23 | 163.40 | 158.26 | 163.11 |
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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