Summary:
Wednesday: Yen near 4-month low vs. dollar, 16-year low vs. euro. Traders expect Japan to keep its accommodative monetary policy after the rate hike.
EBC Forex Snapshot, 20 Mar 2024
The yen languished near a four-month low against the dollar and a 16-year trough against the euro on Wednesday as traders wagered Japan's monetary settings will remain accommodative after a rate hike.
In the previous session, the currency weakened to 151.58 per dollar, with the multi-decade low of 151.94 in sight and the threat of intervention by Japanese authorities resurfacing.
The main spotlight for the day remains on the Fed that is expected to stand pat. Traders are pricing in a 59% chance of the Fed starting its easing cycle in June, the CME FedWatch tool showed.
| Citi (as of 18 Mar) | HSBC (as of 20 Mar) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0695 | 1.1017 | 1.0779 | 1.0965 |
| GBP/USD | 1.2503 | 1.2896 | 1.2580 | 1.2876 |
| USD/CHF | 0.8741 | 0.9000 | 0.8772 | 0.8942 |
| AUD/USD | 0.6443 | 0.6691 | 0.6448 | 0.6639 |
| USD/CAD | 1.3359 | 1.3607 | 1.3449 | 1.3645 |
| USD/JPY | 146.26 | 149.21 | 147.77 | 152.64 |
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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