US Dollar tests 94.00, multi-month peaks

The index clinches new highs beyond the 94.00 handle.
US 10-year yields hovering over the 3.07% level.
Fed-speakers coming up later in the NA session.

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index (DXY), has reached fresh 5-month tops in the 94.00 neighbourhood at the beginning of the week.

US Dollar looks to yields, Fedspeak

The rally in the buck remains everything but abated so far today and is now pushing the index to fresh tops in levels above 94.00 the figure, area last visited in December 2017.

The greenback’s up move has been sustained by yields of the key US 10-year reference keeping the trade above the critical 3.0% level, while recent auspicious developments from the US-China trade talks seem to have poured cold water over the likelihood of a trade war.

News from the USD speculative community noted investors are now net longs for the first time since March 13, according to the latest CFTC report for the week ended on May 15.

In the data space, Atlanta Fed R.Bostic (voter, centrist), Philladelphia Fed P.Harker (non voter, hawkish) and Minneapolis Fed N.Kashkari (non voter, dovish) are due to speak later in the day.

US Dollar relevant levels

As of writing the index is gaining 0.31% at 93.96 facing the next hurdle at 94.03 (high May 21) followed by 94.22 (monthly high Dec.11 2017) and then 94.27 (high Oct.5 2017). On the downside, a break below 93.17 (10-day sma) would aim for 93.47 (low May 18) and finally 92.24 (low May 13).

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 extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.