DXY: Consolidates in a 101.55-101.80 range – DBS

FXStreet Insights Team FXStreet

The Dollar Index (DXY) consolidated in a 101.55-101.80 range after a three-day rally from 100.55 to 101.80, DBS Senior FX Strategist Philip Wee notes.

Markets are likely set to fluctuate more

“US stock and bond markets were closed on Monday for the Labor Day holiday. Still, the S&P and Nasdaq Composite futures are pointing to a positive open today after being in negative territory for most of Monday. Today, consensus sees the US ISM Manufacturing PMI improving to 47.5 in August from 46.8 in July.”

“However, markets see Friday’s jobs report as the primary support for the anticipated 25 bps rate cut at the FOMC meeting on September 18. With markets also weighing this potential against the other rate cuts expected from other central banks, markets will likely fluctuate more after the past two months of USD selling.”

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 climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.