Summary:
US dollar steady post data indicating persistent yet gradual inflation easing. Canadian dollar strengthens on upbeat GDP report.
EBC Forex Snapshot, 1 Mar 2024
The US dollar was steady on Friday after data showed US inflation remained sticky but easing gradually. The Canadian dollar strengthened as investors cheered the country’s latest GDP report.
The Canadian economy expanded at an annualized rate of 1.0% in the fourth quarter, higher than median forecast for a 0.8% growth. Still it showed that the US continued to outperform its northern neighbour.
The BOC is expected to cut interest rates in June, the first among major central banks to do so, according to a Reuters poll. The risk is that home prices are set to rise over the coming years due to constrained housing supply.
| Citi (as of 19 Feb) | HSBC (as of 1 Mar) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0694 | 1.1017 | 1.0701 | 1.0896 |
| GBP/USD | 1.2476 | 1.2827 | 1.2534 | 1.2711 |
| USD/CHF | 0.8551 | 0.9013 | 0.8750 | 0.8911 |
| AUD/USD | 0.6443 | 0.6624 | 0.6426 | 0.6580 |
| USD/CAD | 1.3379 | 1.3586 | 1.3466 | 1.3644 |
| USD/JPY | 146.09 | 151.91 | 148.97 | 150.94 |
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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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.
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