US Dollar Index probes lows at the 95.00 handle

The index came under heavy pressure after US CPI results.
DXY suffered as well another bout of comments from Trump.
US CPI figures came in below expectations in September.

Pablo Piovano FXStreet

The greenback stays offered so far this week and the US Dollar Index remains under pressure around the key support at 95.00 the figure.

US Dollar Index weaker on Trump, CPI

The index is prolonging the weekly correction lower and is now flirting with the key down barrier at the 95.00 mark.

DXY lost further ground after US consumer prices rose less than initially forecasted during September. In fact, tracked by the CPI, headline prices and Core prices rose 0.1% MoM and 2.3% and 2.1%, respectively, over the last twelve months.

On this matter, Senior Market Analyst at FXStreet Joseph Trevisani noted: “The Fed is not pursuing inflation, it is not seeking to damp an overheating economy. It is chasing a 'normal' rate environment and will continue to do so as long as economic growth holds up”.

Further selling pressure hit the buck after President Trump has once again criticized the Federal Reserve for its current monetary policy tightening, saying that ‘the Fed and treasuries are the problem, not the trade war and China’.

On the latter, President Trump is expected to meet China’s Xi Jinping at the G20 meeting in November.

US Dollar Index relevant levels

As of writing the index is losing 0.24% at 95.29 and faces immediate support at 94.98 (low Oct.11) seconded by 94.95 (21-day SMA) and then 94.20 (38.2% Fibo of the 2017-2018 drop). On the upside, a breakout of 96.16 (high Oct.9) would open the door to 96.98 (2018 high Aug.13) and finally 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 looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

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.