US Dollar index remains bid above 97.00

The index is extending the up move to the vicinity of 97.00.
Yields of the US 10-year note drop to the 3.20% area.
US Producer Prices, U-Mich index next on tap.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals, has extended the upbeat tone to the 96.90 region on Friday, where met some sellers.

US Dollar Index looks to data

The index is up for yet another session, prolonging the rebound from Wednesday’s 2-week lows in the 95.70/65 band to the area just below the critical 97.00 mark.

The buck is deriving support from the continuation of the softer tone in the risk-associated universe, where the Brexit negotiations and Italian politics remain in centre stage.

Also sustaining the up move in the index, yesterday’s FOMC statement left the door open for the continuation of the tightening cycle by the Federal Reserve, with consensus among investors almost fully pricing in the fourth rate hike this year at the December meeting.

Looking ahead, October’s Producer Prices are due next seconded by the preliminary figures for US Consumer Sentiment for the current month.

US Dollar Index relevant levels

As of writing the index is gaining 0.14% at 96.79 and a breakout of 96.92 (high Nov.9) would open the door to 97.19 (2018 high Oct.31) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the flip side, the next support emerges at 95.56 (10-day SMA) followed by 96.17 (21-day SMA) and finally 95.68 (low Nov.7).

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 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.

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.

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.