USD/CNH might edge higher to 7.1390 – UOB Group

FXStreet Insights Team FXStreet

Slight increase in upward momentum suggests US Dollar (USD) could edge higher to 7.1390. In the longer run, there is scope for USD to test 7.1450, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

There is scope for USD to test 7.1450

24-HOUR VIEW: "The following are excerpts from our update yesterday: 'The price movements have resulted in a slight increase in upward momentum, but this is likely to lead to a higher trading range of 7.1220/7.1340 rather than a sustained advance'. USD subsequently traded between 7.1244 and 7.1359, closing at 7.1359 (+0.13%). There has been a slight increase in upward momentum, and USD could edge higher to 7.1390 today. The next resistance at 7.1450 is unlikely to come into play. Support levels are at 7.1270 and 7.1230."

1-3 WEEKS VIEW: "Yesterday (04 Nov, spot at 7.1270), we highlighted that USD 'is facing mild upward pressure and there is a chance for it to test 7.1370'. USD subsequently rose to a high of 7.1359. Upward momentum has increased further, albeit not much. That said, there is scope for USD to test 7.1450 from here. To sustain the mild upward momentum, USD must hold above 7.1170 (‘strong support’ level was at 7.1140 yesterday)."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.