US Dollar Index cuts losses, regains 96.60

The index remains on the defensive well below 97.00.
Yields of the US 10-year note also come back and test 2.97%.
Next on tap will be FOMC’s Williams and the IBD/TIPP index.

Pablo Piovano FXStreet

The offered bias remains unchanged around the greenback during the first half of the week, fording the US Dollar Index (DXY), to recede and test fresh multi-day lows near 96.40.

US Dollar Index weaker on risk-on sentiment

The index trades with losses for the second day in a row amidst a better mood in the riskier assets, all almost exclusively in response to the recently announced US-China 90-day trade truce.

The preference for the risk-associated complex has been also weighing on yields of the key US 10-year note, which dropped to fresh 3-month below the critical support at the 3.0% mark.

In the meantime, NY Fed and permanent voter J.Williams is due to speak later along with the release of the IBD/TIPP index.

US Dollar Index relevant levels

As of writing the index is losing 0.38% at 96.59 and a break below 96.32 (low Nov.22) would open the door to 96.04 (low Nov.20) and finally 95.68 (low Nov.7). On the flip side, the next hurdle emerges at 97.53 (high Nov.28) seconded by 97.69 (2018 high Nov.12) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop).

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 tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.