DXY: Continues to rebound – OCBC

FXStreet Insights Team FXStreet

The US Dollar (USD) was boosted again for the 5th back-to-back session and this time the trigger came from the blockbuster payrolls report. DXY was last at 102.58, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Upside risks intact

“The hotter-than-expected jobs report saw further unwinding of dovish bets, adding to the USD’s rebound momentum. Markets are now just eyeing 2 * 25bp cut each for the remainder of the 2 FOMCs in Nov and Dec. With US elections less than 1 month to go, polls still find Trump and Harris neck-and-neck.”

“Further rebalancing in historically low DXY position may imply that USD may stay supported in the interim. Daily momentum remains bullish while RSI rose. Upside risks intact. Resistance at 102.90 (38.2% fibo). Support at 101.80/90 levels (50 DMA, 23.6% fibo retracement of 2023 high to 2024 low). Focus this week on FOMC, CPI data (Thu); PPI (Fri).

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.

EUR/USD clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.