US Dollar Index climbs to session tops around 92.40

DXY reverses the recent downside and retakes 92.40.
Markets’ attention remains on the pandemic, Fed, politics.
The absence of US data releases leaves the focus on risk trends.

Pablo Piovano FXStreet

The greenback, when tracked by the US Dollar Index (DXY), regains some upside traction and clinches daily highs around 92.40.

US Dollar Index looks to pandemic, risk trends

The index manages to attract some buyers at the end of the week and following six consecutive sessions with losses. The dollar’s weekly leg lower appears to have met some decent contention in the 92.20 region, however, area coincident with the 6-month support line (off 2020 peaks on March 20).

In the meantime, traders continue to track the progress of the coronavirus pandemic in the US and the rest of the world, with optimism of an effective vaccine losing some of its recent shine at the same time.

Nothing scheduled in the US calendar today, leaving the price action to the mercy of the broad risk appetite trends.

What to look for around USD

The recent downside in DXY halted just ahead of the 92.00 neighbourhood, where some decent contention seems to have turned up. In the meantime, the dollar remains focused on the post-elections scenario and a the prospects of the US economy under the Biden administration while monitoring at the same time the impact of the second wave of the pandemic on the economic recovery. On another front, the “lower for longer” stance from the Federal Reserve is expected to keep limiting a potential serious upside in the dollar.

US Dollar Index relevant levels

At the moment, the index is gaining 0.10% at 92.38 and a breakout of 93.20 (weekly high Nov.11) would open the door to 93.62 (100-day SMA) and finally 94.30 (monthly high Nov.4). On the flip side, immediate contention emerges at 92.13 (monthly low Nov.9) followed by 91.92 (23.6% Fibo of the 2017-2018 drop) and then 91.80 (monthly low May 2018).

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 meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

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 remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

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.