Summary:
The dollar held seven-week highs on Tuesday as investors cut rate-cut bets after a strong jobs report, while Middle East tensions weighed on it.
EBC Forex Snapshot, 8 Oct 2024
The dollar clung to seven-week highs on Tuesday as investors dashed bets for large rate cuts after a strong jobs report last week, while escalating tensions in Middle East dented risk sentiment.
The yen was off its seven-week low. Strategists still see further strength next year as the BOJ hikes rates, with the median forecast for dollar-yen at 140 in the second quarter, according to Bloomberg.
Speculators flipped to a net long position on the yen for the first time since mid-August last week, CFTC data showed. Hedge funds were the most bullish on Japan's currency since early 2021.
| Citi (as of 30 Sep) | HSBC (as of 8 Oct) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.1002 | 1.1214 | 1.0878 | 1.1141 |
| GBP/USD | 1.3002 | 1.3482 | 1.2948 | 1.3326 |
| USD/CHF | 0.8375 | 0.8749 | 0.8421 | 0.8639 |
| AUD/USD | 0.6757 | 0.6950 | 0.6681 | 0.6888 |
| USD/CAD | 1.3420 | 1.3792 | 1.3474 | 1.3703 |
| USD/JPY | 139.50 | 147.13 | 142.70 | 151.40 |
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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