Summary:
The dollar inched up on Monday as traders awaited the Fed’s policy decision. The Fed is expected to maintain a wait-and-see stance before September.
EBC Forex Snapshot, 29 Jul 2024
The dollar inched higher on Monday as traders look ahead to Fed's policy decision for further interest rate direction. The Fed is seen to stick with its wait-and-see approach before September.
The yen steadied but sentiment remained fragile. Speculation has grown that the Bank Of Japan will raise interest rates on Wednesday at the same time as significantly reducing its monthly bond purchases.
Data released on Friday showed investors have sharply cut back on their bets against the yen. But if the BOJ underwhelms the market, carry trades "may come back with a vengeance."
| Citi (as of 22 Jul) | HSBC (as of 29 Jul) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.0981 | 1.0792 | 1.0935 |
| GBP/USD | 1.2860 | 1.3045 | 1.2750 | 1.3019 |
| USD/CHF | 0.8820 | 0.9158 | 0.8741 | 0.8966 |
| AUD/USD | 0.6663 | 0.6871 | 0.6441 | 0.6727 |
| USD/CAD | 1.3589 | 1.3846 | 1.3663 | 1.3925 |
| USD/JPY | 155.07 | 160.21 | 149.83 | 159.72 |
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.
The dollar held gains and rose slightly in Asia Monday as Japan's holiday cut liquidity, focusing attention on China's disappointing stimulus.
2024-10-14
The US dollar dipped from a two-month high but is set for a second consecutive weekly gain as weak labor market signals support faster Fed rate cuts.
2024-10-11
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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