2024-06-04
EBC Forex Snapshot, 4 Jun 2024
The dollar languished at its lowest since March against the euro and sterling on Tuesday as signs of a softening US economy boosted the case for earlier Fed interest rate cuts.
The ISM purchasing managers index for manufacturing fell to 48.7 in May, from 49.2 in April, while construction spending slid unexpectedly for a second consecutive month in April.
Following the data, fed funds futures increased the chances of a rate cut in September to around 59.1%, according to LSEG's data. Markets are pricing in 57 bps of ECB cuts this year.
| Citi (as of 27 May) | HSBC (as of 3 Jun) | |||
| support | resistance | support | resistance | |
| EUR/USD | 1.0793 | 1.0895 | 1.0773 | 1.0902 |
| GBP/USD | 1.2300 | 1.2803 | 1.2563 | 1.2857 |
| USD/CHF | 0.8988 | 0.9244 | 0.8950 | 0.9123 |
| AUD/USD | 0.6563 | 0.6729 | 0.6582 | 0.6718 |
| USD/CAD | 1.3478 | 1.3846 | 1.3561 | 1.3717 |
| USD/JPY | 152.12 | 157.68 | 154.67 | 158.86 |
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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