- DXY heads for third weekly gain in-a-row, back near 2019 highs.
- Greenback among top performers on Friday, consolidates weekly gains versus majors.
The greenback, measured by the US Dollar Index, rose on Friday and it was about to end the week with a gain of 0.15%. It climbed for the second consecutive day approaching to 97.70, the 2019 highs.
The US employment report showed that the US economy added 196K jobs in March while the unemployment rate stood at 3.8%. Average hourly earnings were up 3.2% from a year ago, below the 3.4% of market consensus. Many analysts considered that the labor market numbers offered a relief to Federal Reserve officials following the bad report for February. Still, they expect growth to be significantly lower over the current year compared to 2018.
Initially, the US dollar lost ground after the report but rebounded sharply and turned positive across the board, despite lower US yields. It peaked after the beginning of the American session and then consolidated gains on a quiet session. The DXY peaked at 97.46, the highest level since April 2 and near the end of the week was hovering around 97.40, on its way to the second highest close for the year.
The trend in DXY still points to the upside but to clear the way to more gains, it needs to break the key strong resistance area located around 97.70 that since November of last year was tested several times.
Key reports for next week:
“In the US, the consumer price index could have increased significantly in March (+0.4% m/m), reflecting a surge in gasoline prices. This, combined with a positive base effect, may have caused the year-on-year rate to rise three ticks at 1.8%. Core inflation, for its part, may have risen 0.2% in the month, allowing the annual rate to remain unchanged at 2.1%. The March iteration of the NFIB Small Business Optimism Index will be published alongside February’s factory orders and Job Openings and Labor Turnover Survey (JOLTS). Finally, the Fed will release the minutes of its March 20 meeting”, resumed National Bank of Canada analysts.
Another critical event will be the European Central Bank meeting and Chinese trade and CPI reports. The Brexit drama will continue and traders will also look at the developments regarding the US-China trade talks.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.