US Dollar clinches highs near 95.60 ahead of US PCE

Pablo Piovano FXStreet

The greenback, tracked by the US Dollar Index, is extending its upside momentum to session peaks in the vicinity of 95.60.

US Dollar focus on US data

The index remains on a firm fashion at the beginning of the week, boosted by the recent hawkish tone from Chair Yellen at the Jackson Hole Symposium as well as supportive Fedspeak for a rate hike in the next months.

USD has advanced to fresh 2-week tops well above the 95.00 handle and remains well poised to challenge August’s tops in the mid-96.00s should the up trend gathers further impulse.

Later in the NA session, US inflation figures gauged by the PCE for the month of July area due along with Personal Spending/Income and the Dallas Fed Manufacturing index.

US Dollar relevant levels

The index is up 0.04% at 95.61 with the next hurdle at 96.37 (200-day sma) ahead of 96.50 (high Aug.5) and finally 96.86 (high Jun.27). On the other hand, a breakdown of 95.26 (20-day sma) would aim for 95.14 (100-day sma) and then 94.05 (low Aug.18).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bullish	Overbought	Low
4H	Bullish	Overbought	High
1D	Bullish	Neutral	Expanding
1W
Updated Aug 29, 08:45 GMT

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.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold extends its struggle with $4,400, but bullish bias intact

Gold is holding the previous recovery from near $4,300 on early Monday, struggling around the key $4,400 level. However, buyers retain control as the new week kicks in, with all eyes on the Middle East updates and the Minutes of the US Federal Reserve July monetary policy meeting.

Bitcoin holds critical support, Ethereum awaits directional move, XRP weakens

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) begin the week on a cautious note after slipping over 3%, 1.5%, and 3.5%, respectively, in the previous week. BTC finds support around the key $62,300 level while ETH continues to trade sideways. Meanwhile, XRP hovers around $1.00, with weakening momentum suggesting deeper losses.

US Dollar Weekly Forecast: Economic cracks challenge Fed rate bets

It was a strange week for the US Dollar: while the geopolitical situation has remained largely unchanged, with the usual back-and-forth between the US, Iran, and occasional third parties, disappointing domestic data have re-emerged, reducing expectations of potential tightening by the Federal Reserve in the next few months.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.