USD/JPY Slides on Thursday, reversing gains from intervention. The dollar had been weak after the Fed's dovish meeting.
EBC Forex Snapshot, 2 May 2024
USD/JPY Slides on Thursday, reversing direction after a sudden surge that was attributed to intervention. The dollar was on the back foot after the Fed struck a conciliatory tone at its meeting.
Powell stressed it "will take longer than previously expected" for policymakers to become comfortable that inflation will resume the decline towards their target. He also saw more rate hikes as unlikely.
The gap between long-term government bond yields in Japan and the US is around 380 bps. The yen’s big swings could have signalled Japanese authorities see 160 as their line in the sand.
Citi (as of 29 Apr) | HSBC (as of 2 May) | |||
support | resistance | support | resistance | |
EUR/USD | 1.0601 | 1.0885 | 1.0621 | 1.0774 |
GBP/USD | 1.2289 | 1.2524 | 1.2358 | 1.2631 |
USD/CHF | 0.8999 | 0.9244 | 0.9035 | 0.9249 |
AUD/USD | 0.6362 | 0.6668 | 0.6393 | 0.6619 |
USD/CAD | 1.3478 | 1.3846 | 1.3629 | 1.3846 |
USD/JPY | 155.00 | 160.20 | 151.36 | 158.81 |
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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On Friday, the US dollar fell to a one-week low as mixed job market signals emerged before key payroll data likely to influence Fed policy.
2024-09-06The dollar fell Thursday on US economic worries, with the yen rising on safe-haven demand. Traders see a 44% chance of a 50-bp cut this month.
2024-09-05Safe-haven currencies surged Wednesday as Wall Street and Asian stocks fell sharply, leading to losses in commodity currencies.
2024-09-04