USD/CNH: A surpass of 7.3500 could lead to 7.3800 – UOB

Pablo Piovano FXStreet

USD/CNH could revisit the 7.3800 region once it clears 7.3500, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: While we expected USD to rise further yesterday, we were of the view that it “is unlikely to reach 7.3500.” In line with our view, USD rose, but it did not reach 7.3500 (high has been 7.3460). Upward momentum has slowed a tad, and while USD could reach 7.3500 today, any advance is viewed as a higher trading range of 7.3200/7.3500. To put it another way, USD is unlikely to break clearly below 7.3200 or above 7.3500.

Next 1-3 weeks: Our latest narrative was from two days ago (06 Sep, spot at 7.3100), wherein the risk for USD has shifted to the upside towards 7.3500. Yesterday, USD rose to a high of 7.3460. Despite the advance, upward momentum has not increased all that much. That said, a break of 7.3500 would not be surprising and would then shift the focus to 7.3800. In order to keep the momentum going, USD must stay above 7.3000 (‘strong support’ level previously at 7.2800).

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.