US Dollar Index advances to daily highs beyond 94.80

The index gathers extra steam and moves to daily peaks.
Yields of the US 10-year reference clinched 3.00% and above.
US flash Consumer Sentiment bettered estimates this month.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main competitors, is trading on a better mood now and clinching fresh tops in the 94.80/85 band.

US Dollar Index bid after upbeat U-Mich

The index accelerated the rebound from lows in the 94.40/35 region after the preliminary print of the US Consumer Sentiment for the current month came in above expectations at 100.8.

DXY left behind the initial pessimism after disappointing results from Retail Sales added to the generalized selling pressure triggered after inflation figures tracked by the CPI surprised to the downside during last month.

The bounce off session lows in the 94.40/35 band has been in tandem with the recovery of yields in the US 10-year note to fresh tops just beyond the critical 3.0% milestone.

Additional data saw Industrial Production expanding at a monthly 0.4% in August and Business Inventories at 0.6% inter-month in July.

Despite the ongoing recovery, the greenback is on its way to close the week in red figures, as investors’ preference this week shifted to the riskier assets in light of mitigated concerns from the EM universe, absence of progress in the US-China trade dispute and poor prints from the US calendar.

US Dollar Index relevant levels

As of writing the index is gaining 0.23% at 94.76 and a break above 95.74 (high Sep.4) would aim to 96.04 (50% Fibo of the 2017-2018 drop) and then 96.96 (2018 high Aug.15). On the downside, immediate support emerges at 94.36 (low Sep.14) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26).

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 keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.