US Dollar testing tops near 101.40, Yellen on focus

Pablo Piovano FXStreet

The greenback – tracked by the US Dollar Index (DXY) – is advancing further north of the 101.00 handle on Wednesday, trading in daily highs in the 101.40/45 band.

US Dollar attention to data, Yellen

The index clinched fresh 4-week tops in response to the hawkish message by Chief Janet Yellen at her semi annual testimony on Tuesday.

Yellen reinforced the case for gradual hikes during this year, while subsequent comments by Richmond Fed J.Lacker advocated for a rate hike in March and hinted at the likeliness of more than the initially projected three rate hikes in 2017.

Yellen’s hawkish tone boosted US yields, which in turn gave extra legs to the Dollar’s up move.

On the data front, Yellen’s testimony before the House Financial Services Committee will take centre stage once again, followed by US inflation figures gauged by the CPI, Industrial Production, TIC Flows, the Empire State index, January’s Retail Sales, the NAHB index and the weekly report on crude oil inventories by the EIA.

In addition, Boston Fed E.Rosengren (2019 voter, dovish) and Philly Fed P.Harker (voter, hawkish) are also due to speak.

US Dollar relevant levels

The index is gaining 0.19% at 101.39 and a breakout of 101.71 (high Jan.19) would target 101.95 (23.6% Fibo of the November-January up move) en route to 102.96 (high Jan.11). On the flip side, the next support lines up at 100.56 (low Feb.10) followed by 100.39 (20-day sma) and then 100.03 (low Feb.8).

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.