USD/CHF eases to fresh session lows near 0.9950 on risk aversion

Markets started the week on a cautious tone.
The US Dollar Index fails to recover back to the 95 mark.
Risk perception is likely to stay as the primary driver in the remainder of the day.

Eren Sengezer FXStreet

After staying relatively quiet during the Asian trading hours, the USD/CHF pair gained traction in the European morning but lost its momentum before reaching the critical parity mark. With investors staying away from riskier assets, the CHF gathered strength against the buck and the pair was last seen trading at 0.9946 where it was down 0.3% on the day.

Concerns surrounding the global trade conflict took control of the price action on Monday as China responded by imposing tariffs on American imports following President Trump's announcement last Friday. "China’s tariff announcement mirrors that of the US: a 25% tariff on $34bn in US exports starting 6 July with an additional $16bn targeted but on hold. The targeted product by China include agricultural products and autos,” Nomura analysts explain.

The flight-to-safety caused the Japanese Nikkei 225 to close the day 0.75% lower. Meanwhile, Germany's DAX and the UK's FTSE 100 indexes are losing 1.45% and 0.35% respectively. Furthermore, major equity indices in the United States are also pointing to a negative start to the week, which could keep the pair under pressure in the remainder of the day.

On the other hand, the US Dollar Index, which started the day with a bearish gap, stays in the negative territory amid a lack of fundamental catalysts that could wake the USD bulls up.

Technical levels to consider

On the upside, 1.0000 (parity/psychological level) remains as the initial resistance. A daily close above that level could open the door for further gains toward 1.0055 (May 9 high) and 1.0095/1.0100 (May 10, 2017, high/psychological level). On the downside, supports could be seen at 0.9925 (50-DMA), 0.9880 (20-DMA) and 0.9790 (Jun. 7 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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.