US Dollar weaker, challenges lows near 99.70

Pablo Piovano FXStreet

The greenback – tracked by the US Dollar Index – remains on the defensive ahead of the opening bell in Euroland, currently in session lows around 99.70.

US Dollar focus on data

After climbing to 1-year tops in the vicinity of 100.30 on Monday, the index is now facing some profit taking sentiment and receding to the 99.70/65 band ahead of US Retail Sales.

Market consensus expects sales to have expanded at a monthly 0.6% during October, while the NY Empire State Manufacturing index is seen improving to -2.5 for the current month. In addition, Boston Fed E.Rosengren (voter, dovish) and FOMC’s Vice Chairman S.Fischer (permanent voter, hawkish) are also due to speak.

In the meantime, the underlying bullish sentiment around the buck remains intact, always backed by rising expectations of a Fed’s rate hike next month, solid momentum in US yields and prospects of extra fiscal stimulus during Trump’s presidency.

Furthermore, speculative positioning is also lending support to the buck. Despite net longs have retreated to 3-week lows during the week ended on November 8, they keep the area of multi-month peaks according to the latest CFTC report.

US Dollar relevant levels

The index is losing 0.28% at 99.75 facing the next support at 99.20 (low Nov.14) followed by 98.39 (20-day sma) en route to 96.94 (low Nov.4). On the flip side, a break above of 100.24 (high Nov.14) would target 100.60 (high Dec.3 2015).

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 loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.