2024-08-02
EBC Forex Snapshot, 2 Aug 2024
Sterling stumbled to a fresh one-month low on Friday following a nearly 1% plunge overnight as the Bank Of England kicked off its interest-rate cutting cycle. The euro languished close to a one-month despite of sticky inflation.
Core inflation hit 2.9% in July, versus a Reuters estimate of 2.8%. ECB policymaker Yannis Stournaras raised the risk of a weak euro zone economy sending inflation below the 2% target in an interview published on Thursday.
While the latest UK data has been relatively robust, investors say recent signs of slowing growth and inflation in the eurozone and the US have spurred bets that the British economy could follow a similar trajectory.
| Citi (as of 29 Jul) | HSBC (as of 2 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.0981 | 1.0728 | 1.0900 |
| GBP/USD | 1.2860 | 1.3045 | 1.2621 | 1.2950 |
| USD/CHF | 0.8743 | 0.9050 | 0.8637 | 0.8898 |
| AUD/USD | 0.6465 | 0.6799 | 0.6387 | 0.6698 |
| USD/CAD | 1.3590 | 1.3899 | 1.3704 | 1.3965 |
| USD/JPY | 151.53 | 155.00 | 145.61 | 155.98 |
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.
