Yen Rises After Bank of Japan Action
2024-08-23
Summary:
The dollar dipped slightly on Friday as markets await Powell's speech at the Jackson Hole event, hoping for clues on the Fed's near-term rate cuts.
EBC Forex Snapshot, 23 Aug 2024
The dollar was slightly down on Friday as markets await Powell, who is due to speak at a central bank event in Jackson Hole, offers clues on how much the Fed could lower borrowing costs in the near term.
Fed policymakers on Thursday lined up in support of starting interest rate cuts next month now that inflation is down from its highs and the US labour market is cooling, though one signalled he is in no rush to ease policy.
The yen edged up in that BOJ Governor Kazuo Ueda disappointed some by saying the central bank still plans to raise interest rates if the economy and inflation turn out as forecast.
| Citi (as of 19 Aug) | HSBC (as of 23 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.1068 | 1.0938 | 1.1230 |
| GBP/USD | 1.2673 | 1.2946 | 1.2790 | 1.3257 |
| USD/CHF | 0.8333 | 0.8827 | 0.8384 | 0.8702 |
| AUD/USD | 0.6363 | 0.6799 | 0.6447 | 0.6861 |
| USD/CAD | 1.3597 | 1.3946 | 1.3474 | 1.3851 |
| USD/JPY | 145.89 | 150.00 | 142.15 | 149.88 |
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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