USD/CNH: Extra gains expected above 6.4950 – UOB

Pablo Piovano FXStreet

USD/CNH could see a sustained upside once 6.4950 is cleared, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘despite the quiet price actions, we continue to see chance for USD to edge higher but a sustained rise above 6.4780 appears unlikely’. While USD subsequently edged higher, it did not break 6.4780 (high of 6.4750). Upward momentum is beginning to improve and the bias for today is on the upside. A break of 6.4780 would not be surprising but the next resistance at 6.4900 is unlikely to come into the picture. Support is at 6.4680 followed by 6.4630.”

Next 1-3 weeks: “We have held the same view since Monday (28 Jun, spot at 6.4605) where USD is expected to trade sideways, likely within a 6.4300/6.4900 range. There is no change in our view but shorter-term upward momentum is beginning to improve. While upside risk appears to be building, USD has to break 6.4950 before a sustained advance can be expected. The prospect of USD to break 6.4950 is not high for now but it would remain intact as long as USD does not move below the ‘strong support’ level at 6.4590 within these few days.”

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.