The dollar steadied Friday after a Q1 US GDP revision hinted at Fed rate cuts. The yen stayed above its four-week low on stable price growth.
EBC Forex Snapshot, 31 May 2024
The dollar steadied on Friday after a downward revision to US GDP for Q1 suggested room for the Fed to cut interest rates this year. The yen remained off its four-week low on stable price growth.
Markets currently priced in a 55% chance of rate cuts to begin in September, according to the CME Group's FedWatch Tool. The downgrade followed recent softness in readings of retail sales and equipment spending.
Data showed core consumer inflation in Tokyo accelerated in May but price growth excluding the effect of fuel eased, heightening uncertainty on the timing of the BOJ's next rate hike.
Citi (as of 27 May) | HSBC (as of 31 May) | |||
support | resistance | support | resistance | |
EUR/USD | 1.0793 | 1.0895 | 1.0766 | 1.0896 |
GBP/USD | 1.2300 | 1.2803 | 1.2557 | 1.2851 |
USD/CHF | 0.8988 | 0.9244 | 0.8959 | 0.9132 |
AUD/USD | 0.6563 | 0.6729 | 0.6569 | 0.6705 |
USD/CAD | 1.3478 | 1.3846 | 1.3596 | 1.3752 |
USD/JPY | 152.12 | 157.68 | 154.33 | 158.52 |
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