US Dollar rebounds from 88.50, NFP on sight

DXY found decent support in the mid-88.00s.
US 10-year yields closer to 2.80%.
US non-farm payrolls coming in next.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which measures the greenback vs. its main competitors, is managing to stage a rebound to the 88.70/75 band after probing fresh weekly lows in the mid-88.00s during early trade.

US Dollar now focused on payrolls

In spite of the current rebound, the index remains entrenched well into the bearish territory and trading close to last week’s multi-year lows in the 88.40 region.

Higher yields in the US money markets and prospects of further tightening via (three) rate hikes this year appear not even close to spark a more durable upside reaction in the buck, which stays at the mercy of, mainly, the uncertainty and effervescence of the US political scenario.

It is worth mentioning that DXY lost already around 7% since December’s peaks above the 95.00 handle, while the loss climbs to nearly 15% when we take into account 14-year tops in the 103.80 area recorded over a year ago (January 2017).

Ahead in the session, the monthly US labour market report is due, with initial estimates seeing non-farm payrolls coming in at 180K for the month of January.

US Dollar relevant levels

As of writing the index is up 0.04% at 88.69 facing the next up barrier at 90.70 (high Jan.22) followed by 90.98 (high Jan.18) and then 92.64 (high Jan.9). On the flip side, a break below 88.55 (low Feb.2) would open the door to 88.42 (2018 low Jan.25) and finally 86.60 (weekly trend line off 72.70).

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.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.