US Dollar off lows, still below 90.00

Pablo Piovano FXStreet

The greenback, tracked by the US Dollar Index (DXY), has dropped to levels last seen in December 2014 below the critical support at 90.00 the figure, extending the bearish momentum seen in past weeks.

US Dollar weak on Trump’s trade measures

The selling pressure stays unabated around the buck so far this week, pushing the index to test fresh 4-year lows in the vicinity of 89.80 during early trade. The down move, however, seems to have found some decent support around that area for the time being.

USD met fresh selling impetus in response to President Trump’s measures on trade, imposing tariffs on solar panels and washing machines, showing the White House bias towards protectionism remains unchanged.

In the same line, Japan suggested the Trans-Pacific trade pact could be signed in March, without the US.

In the data space, advanced manufacturing/services PMI by Markit are due later in the NA session along with December’s existing home sales and the usual weekly report on US crude oil supplies by the EIA.

US Dollar relevant levels

As of writing the index is losing 0.12% at 89.99 and a break below 89.82 (low Jan.24) would expose 87.64 (low Dec.16 2014) and finally 84.48 (low Oct.15 2014). On the upside, the next barrier aligns at 90.70 (high Jan.22) seconded by 90.98 (high Jan.18) and then 92.64 (high Jan.9).

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.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.