DXY: Payrolls data eyed – OCBC

FXStreet Insights Team FXStreet

The US Dollar (USD) is up for the 4th consecutive session overnight as US data surprised to the upside while geopolitical tensions in the middle east remains elevated. DXY was last at 101.93, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Daily momentum is bullish

“ISM services, prices paid and new orders were stronger though employment slipped into contractionary territory. Focus today turns to US payrolls. Consensus is looking for +150kprint for NFP (vs. +142k prior), unemployment rate and hourly earnings to hold steady at 4.2% and 3.8% y/y, respectively.”

“Markets may unwind some of its dovish bets if labor-related data comes in hotter, and this may continue to add to USD rebound momentum in the near term. But given that the USD has corrected somewhat this week, the risks for the USD can be symmetric. A downside print in NFP (i.e. cooler job market) may see recent USD gains fade.”

“Daily momentum is bullish while rise in RSI moderated. Some consolidation is likely intra-day. Resistance at 101.90 (50 DMA, 23.6% fibo retracement of 2023 high to 2024 low), 102.50 levels. Near term support at 101 (21 DMA), 100.20 (recent low).”

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FXStreet Insights Team

FXStreet

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EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.