2024-08-07
EBC Forex Snapshot, 7 Aug 2024
The yen slumped on Wednesday after a BOJ official played down the chances of a near-term rate hike in a fresh twist to the week that started with massive moves driven by US recession fears.
"As we are seeing sharp volatility in domestic and overseas financial markets, it's necessary to maintain current levels of monetary easing for the time being," Deputy Governor Shinichi Uchida said.
The dollar inched away from the seven-month low. Markets are now pricing in a 70% chance of the Fed cutting rates by 50 bps in September, CME FedWatch tool showed.
| Citi (as of 5 Aug) | HSBC (as of 7 Aug) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0796 | 1.0948 | 1.0801 | 1.1034 |
| GBP/USD | 1.2613 | 1.2894 | 1.2569 | 1.2911 |
| USD/CHF | 0.8551 | 0.8827 | 0.8321 | 0.8814 |
| AUD/USD | 0.6466 | 0.6653 | 0.6328 | 0.6725 |
| USD/CAD | 1.3590 | 1.3899 | 1.3653 | 1.3931 |
| USD/JPY | 145.37 | 150.00 | 138.02 | 154.22 |
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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