USD could easily fall to the multi-month range low of 99 - Westpac

Sandeep Kanihama FXStreet Contributor

Imre Speizer, Research Analyst at Westpac, suggests that after a strong run during February and early March, the US dollar has flipped into negative mode, the main catalyst being the FOMC meeting last week which stressed gradualism in its tightening cycle but the US dollar index (DXY) could easily fall to the multi-month range low of 99.

Key Quotes

“This week’s event calendar is thin: new and existing home sales, and durable goods orders. Fedspeak will be more important and plentiful, including Evans, George, Mester, Kashkari, Kaplan, Bullard and Yellen.”

“3 months: We suspect the USD will falter into mid-year, but resume its uptrend thereafter. Watch the repeal and replacement of Obamacare. Delays here will push out the timetable for tax reform/tax cuts/ infrastructure and will provide an early acid test of the cohesion of the Republican Party. High risk that tax reform could run afoul of challenging political realities: even if Senate filibuster risks can be dodged via the 2018 reconciliation bill (needing just a simple majority vote) great swathes of the Republican Party remain lukewarm on infrastructure, border adjusted taxes and funding spending plans by gutting government agencies.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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.