US Dollar Index tumbles to lows near 95.00

The index drops further and approaches 95.00.
Yields of the US 10-year note sidelined around 3.15%.
US Empire State index, Retail Sales next on tap.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, has started the week on the defensive and is now coming in closer to the critical support at 95.00 the figure.

US Dollar Index looks to data, risk

The index continues to fade Friday’s advance against the backdrop of a deteriorating sentiment in the stock markets, which is lending extra support to the Japanese safe haven and is forcing USD/JPY lower.

In the meantime, yields of the key US 10-year reference keep the narrow sideline theme around the 3.15% ahead of key releases in the US calendar later today.

Moving forward, the greenback should be in centre stage in light of the publication of the NY Empire State index and September’s Retail Sales. In addition, the US Treasury is expected to release its bi-annual report on FX manipulation, although it is unlikely that mentions China as a ‘currency manipulator’.

US Dollar Index relevant levels

As of writing the index is losing 0.22% at 95.05 and faces immediate support at 94.98 (21-day SMA) seconded by 94.95 (low Oct.12) 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 trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

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.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

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.