2024-06-07
EBC Forex Snapshot, 7 Jun 2024
The dollar hovered close to an eight-week low on Friday ahead of a crucial US jobs report that could provide clues on the Fed's monetary path. Markets currently price in 50 bps of cuts by year end.
The euro held on to overnight gains after the European Central Bank reduced rates in a well-telegraphed move - the first reduction in five years. Inflation is projected to reach 2.5% in 2024, higher than the previous forecast for 2.3%.
Policymakers offered few hints about the next move. Analysts say the decision is unlikely to be followed by a series of fast cuts as sticky inflation will limit the room for additional loosening.
| Citi (as of 3 Jun) | HSBC (as of 7 Jun) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0788 | 1.0895 | 1.0811 | 1.0940 |
| GBP/USD | 1.2300 | 1.2803 | 1.2704 | 1.2845 |
| USD/CHF | 0.8988 | 0.9158 | 0.8796 | 0.9073 |
| AUD/USD | 0.6563 | 0.6729 | 0.6599 | 0.6720 |
| USD/CAD | 1.3577 | 1.3846 | 1.3593 | 1.3743 |
| USD/JPY | 152.12 | 158.44 | 154.17 | 157.40 |
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.
