USD/CNH: Outlook remains negative – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group noted the outlook for USD/CNH still looks negative in the near-term.

Key Quotes

24-hour view: “USD closed little changed at 4.5019 last Thursday (6.5019, -0.07%) but weakened after opening this morning. Downward momentum has improved and the risk is for USD to weaken further. That said, the major support at 6.4720 is likely out of reach. Resistance is at 6.5030 followed by 6.5100.”

Next 1-3 weeks: “USD dipped to a fresh low of 6.4880 last Thursday (31 Dec). Downward momentum is improving and USD could weaken further to 6.4720. A break of this level would open up the way for further weakness towards 6.4450. All in, the outlook for USD is negative unless it can move above the ‘strong resistance’ level at 6.5250.”

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 faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.

Gold plunges on sudden US Dollar demand

Gold drops markedly on Thursday, challenging the $4,900 mark per troy ounce following a firm bounce in the US Dollar and amid a steep sell-off on Wall Street, with losses led by the tech and housing sectors.

Ripple collaborates with Aviva Investors to tokenize funds as XRP interest declines

Ripple (XRP) exhibits subtle recovery signs, trading slightly above $1.40 at the time of writing on Thursday, as crypto prices broadly edge higher. Despite the metered uptick, risk-off sentiment remains a concern across the crypto market, as retail and institutional interest dwindle.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.