US Dollar clings to gains around 93.00 ahead of US PCE

Pablo Piovano FXStreet

The greenback, measured by the US Dollar Index (DXY), is posting marginal gains at the end of the week, recovering part of the ground lost on Thursday.

US Dollar attention to data

The index retreated from yesterday’s multi-week tops around 93.70 following a retracement in yields of the key US 10-year benchmark, which seems to have found strong resistance around 2.36%.

In addition, USD-sellers stepped in as the positive sentiment following the announcement of the tax reform proposal by the Trump administration fizzled out somewhat.

However, and despite the ongoing correction, DXY stays on course to close the third week with gains, extending the rebound from fresh cycle lows in the 91.00 neighbourhood seen in early September.

Quite busy US docket today, with August’s inflation figures tracked by the PCE next on tap, seconded by personal income/spending and the final print of the consumer sentiment for the month of September. In addition, Philly Fed P.Harker (voter, hawkish) is also due to speak.

US Dollar relevant levels

As of writing the index is gaining 0.03% at 92.98 facing the immediate resistance at 93.66 (high Sep.28) followed by 94.03 (23.6% Fibo of the 2017 drop) and finally 94.14 (high Aug.16). On the other hand, a breach of 92.60 (10-day sma) would open the door to 92.35 (21-day sma) and finally 91.53 (low Sep.20).

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 advances as US-Iran peace deal weighs on US Dollar

EUR/USD rises after registering minor losses in the previous day, trading around 1.1610 during the Asian hours on Monday. The pair appreciates as the US Dollar declines amid easing risk aversion following the reports that the United States and Iran agree on a peace deal to end the war and reopen the Strait of Hormuz.

GBP/USD rises as market sentiment improves on US-Iran peace deal

GBP/USD gains ground after registering minor losses in the previous day, trading around 1.3450 during the Asian hours on Monday. The pair rises as the US Dollar declines amid easing risk aversion following the reports that the United States and Iran have agreed on a peace deal to end the war and reopen the Strait of Hormuz.

Gold: US-Iran peace deal bolsters recovery as eyes turn to Fed

Gold is at its highest level in four days early Monday, above $4,300, extending the bullish opening gap and the recent recovery. The bright metal kicks off a new week with a bang, having hit year-to-date lows near the $4,000 threshold last week.

Bitcoin consolidates gains, Ethereum defends support, XRP nears breakout trigger

Bitcoin, Ethereum and Ripple begin the week on a constructive note as the top three cryptocurrencies attempt to extend rebounds after recovering nearly 4%, 2% and 2.6%, respectively. BTC steadies around $65,600, ETH continues to hold firmly above the key $1,700 support, while XRP nears the upper boundary of the falling channel pattern.

BoJ set to hike, but will it save the Yen?

The Bank of Japan is poised to hike interest rates for the fifth time in this tightening cycle on Tuesday, taking the policy rate from 0.75% to 1.00%. As has become customary for BoJ rate hikes lately, the hawkish rhetoric has been intensifying in the run up to the meeting, with Governor Ueda essentially locking in the move in his last appearance on June 3.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.