DXY: 2-way trades likely to persist – OCBC

FXStreet Insights Team FXStreet

US Dollar (USD) continued to trade mixed in absence of fresh catalyst. DXY was last at 99.50 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Data to be delayed yet again due to shutdown

"Mild bullish momentum on daily chart faded but decline in RSI slowed. 2-way trades likely to persist. Resistance at 100.40/60 levels (200 DMA, 76.4% fibo), 101.20 levels. Support at 99.10 levels (50% fibo retracement of May high to September low), and 98.20/40 levels (50, 100 DMAs, 38.2% fibo)."

"On ending the government shutdown, a vote in the House is expected later today and is expected to have enough votes in the Republican-controlled House for passage. Question remains when will data releases resume normal flow after US government ends?"

"CPI, PPI and retail sales data are supposed to be released on Thursday, Friday this week but is likely to be delayed until further notice. Past data will be gradually released after shutdown is lifted, going by historical episodes. The statistical agencies can release the missed data as and when they are ready and need not wait till the next scheduled date to release."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD remains weak near 1.1800

EUR/USD remains on the back foot on Thursday, trading close to the 1.1800 support ahead of the opening bell in Asia. The pair’s pullback comes amid further gains in the Greenback, while investors keep assessing the ECB’s decision to leave its policy rates unchanged

GBP/USD falls to new lows near 1.3530

GBP/USD extends Wednesday’s pullback on Thursday, easing lower towards two week lows around the 1.3530 area. Ongoing strength in the Greenback and the dovish hold from the BoE at its earlier meeting are keeping demand for the British Pound on the defensive for now.

Gold fails to sustain gains above $5,000 for third consecutive day

Gold is back under pressure on Thursday, slipping back towards the $4,800 region per troy ounce. A firmer US Dollar is weighing on the yellow metal, even as the broader mood remains risk off. That said, falling US Treasury yields across the curve are helping to cushion the downside and, for now at least, are limiting the depth of the pullback.

Strategy's Bitcoin treasury in focus as MSTR crashes alongside crypto market

Strategy (MSTR), the largest corporate holder of Bitcoin (BTC), is in focus ahead of its earnings call on Thursday amid an intensifying crypto market sell-off. Also caught in the headwinds is the MSTR stock, trading at $114 at the time of writing, down over 12% intraday.

The AI mirror just turned on tech and nobody likes the reflection

Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection.

Breaking: Bitcoin slips below $70,000 as falling knife scenario in play

Bitcoin (BTC) price dips below $70,000 on Thursday, having corrected nearly 20% for this year. Market momentum turned extremely bearish, with technical indicators pointing to further downside toward the next key support at $65,000.