US Dollar clinches highs near 100.60

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index, is now intensifying its upside, moving closer to the 100.60 area, or daily tops.

US Dollar bid above 100.00

The index continues to bounce off weekly lows in sub-100.00 levels traded in the wake of the Italian referendum on Monday, already retaking the mid-100.00s as the buying interest around USD seems to be gradually turning up.

Recent auspicious results from the US docket have added to the solid recovery of the US economy and to the prospects of the stronger dollar in the periods ahead.

Supporting this view, further tightening by the Federal Reserve later in the month is almost priced in by market participants while prospects of higher inflation expectations backed by a probable looser fiscal policy under Trump’s presidency remain a key driver for the dollar’s upside potential.

Furthermore, speculators remain bullish on USD, as net longs have climbed to the highest level since November 1 during the week ended on November 29, as seen in the latest CFTC report.

Looking ahead, Mortgage Applications and JOLTs Job Openings are only due followed by the EIA’s weekly report on crude inventories.

US Dollar relevant levels

The index is gaining 0.05% at 100.56 and a break above 100.76 (20-day sma) would open the door to 101.88 (high Nov.30) and then 102.12 (2016 high Nov.24). On the flip side, the immediate support is located at 99.87 (low Dec.5) followed by 99.70 (23.6% Fibo of May-November up move) and finally 99.38 (low Nov.14).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.