US Dollar hovering over daily lows near 95.10

The index erodes its early gains and drops to the vicinity of 95.10.
US 10-year yields clinch highs around the 2.95% handle.
US JOLTs Job Openings, NFIB index next on tap.

Pablo Piovano FXStreet

The US Dollar Index (DXY) has given away initial gains and has now receded to the current 95.15/10 band, or session lows.

US Dollar looks to trade, data

The index is trading weekly lows in the boundaries of 95.10 following a pick up in the demand for the Chinese Yuan, which dragged USD/CNY to fresh lows in the 6.83 neighbourhood.

In this regard, the PBoC said its FX reserves climbed to $3.118 trillion at the end of July, adding that the reserve levels will stay stable overall. The central bank noted financial asset price fluctuations, changes in non-dollar currencies all collaborated with higher reserves last month.

The PBoC also noted that volatility in financial global markets is poised to increase and that the fluctuation in CNY has increased considerably.

In the meantime, the US-China trade dispute remains poised to drive the markets’ sentiment for the time being.

In the data space, JOLTs Job Openings during June are coming up next seconded by the NFIB index and the weekly report on US crude oil inventories by the API.

US Dollar relevant levels

As of writing the index is losing 0.27% at 95.12 facing the next support at 94.98 (low Aug.3) seconded by 94.80 (10-day SMA) and finally 94.50 (55-day SMA). On the upside, a breakout of 95.20 (high Aug.6) would aim for 95.38 (high May 29) and then 95.53 (high Jun.28).

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.