The Japanese Yen fell after Monday's intervention

2024-05-06
Summary:

The dollar was steady Monday as weak US jobs data raised the odds of Fed rate cuts. The Yen dropped after suspected intervention last week.

EBC Forex Snapshot, 6 May 2024


The dollar was broadly steady on Monday as a soft US jobs report boosted wagers that the Fed may still cut rates this year, while the Yen lurched lower after last week's suspected intervention.


Data on Friday showed job growth slowed more than expected in April and the increase in annual wages fell below 4% for the first time in nearly three years. A rate cut in November are fully priced in now.

USDJPY

The Yen's rally was linear in a market decidedly bearish on the currency, given the massive gap between its yields and those in other major economies. It has swung wildly recently, suggesting a bumpy road ahead.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 29 Apr) HSBC (as of 3 May)

support resistance support resistance
EUR/USD 1.0601 1.0885 1.0632 1.0785
GBP/USD 1.2289 1.2524 1.2362 1.2635
USD/CHF 0.8999 0.9157 0.9002 0.9216
AUD/USD 0.6362 0.6668 0.6420 0.6646
USD/CAD 1.3478 1.3846 1.3585 1.3802
USD/JPY 155.00 160.20 150.98 158.15

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.

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