US Dollar clings to gains near 93.70

DXY stays buoyant above 93.60.
US data came in stronger than expected.
Attention now shifted to payrolls (Friday).

Pablo Piovano FXStreet

The greenback, gauged by the US Dollar Index, remains on the positive ground so far today, extending the upside momentum to the 93.70 region.

US Dollar now looks to payrolls

The rally in the buck stays supported by rising optimism over the US tax reform bill, which could be implemented at some point before Christmas following the recent vote at the Senate.

Curiously, the solid march north of the greenback has been against the backdrop of declining yields in the key US 10-year reference, dropping around 11 bps since last week’s tops in the 2.44% neighbourhood.

In the US data space, Challenger job cuts rose 30.1% in November, or 35.0K, while initial claims came in at 236K on a weekly basis, retreating for the third consecutive week.

Looking ahead, November’s non-farm payrolls will be the salient event tomorrow seconded by the advanced gauge of US consumer sentiment for the current month.

US Dollar relevant levels

As of writing the index is gaining 0.14% at 93.69 and a break above 93.80 (high Dec.7) would open the door to 94.03 (23.6% Fibo of 2017 drop) and finally 94.17 (high Nov.21). On the flip side, the next support emerges at 92.50 (low Nov.30) seconded by 91.78 (low Sep.22) and then 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 trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.