US Dollar struggling for direction near 99.50

Pablo Piovano FXStreet

The greenback – gauged by the US Dollar Index – remains under pressure so far this week, currently looking to gather some traction in the mid-99.00s.

US Dollar attention to US politics

The index has practically retraced the February-March rally, so far losing ground for the third straight week while navigating levels last seen in early February and closer to YTD lows in the vicinity of 99.20.

USD weakness has been picking up pace since the Fed’s dovish hike last week, accelerating the rejection from tops near 102.30 to the current 99.40 area, where it seems to have found some support.

USD-supportive Fedspeak Tuesday and Wednesday did nothing to curb the bearish mood around the buck, keeping US yields depressed and capping potential bullish attempts.

Today’s salient event will be the voting of the American Health Care Act. The failure to pass the bill could undermine the timing of the implementation of Trump’s fiscal plans and could hurt the buck further.

In addition, the usual weekly report on the US labour market is due along with New Home Sales.

US Dollar relevant levels

The index is gaining 0.01% at 99.49 facing the next up barrier at 99.85 (78.6% Fibo of the February-March up move) ahead of 100.27 (high Mar.20) and then 100.84 (55-day sma). On the slip side, a breakdown of 99.46 (low Mar.21) would aim for 99.19 (2017 low Feb.2) and finally 96.94 (low Nov.4 2016).

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.