US Dollar clinches session highs near 95.00

The index moves higher and trades closer to the 95.00 handle.
Yields of the US 10-year note reclaim the 3.00% level.
US Initial Claims, June’s Factory Orders next on tap.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main competitors, is extending the upside to the vicinity of the critical 95.00 milestone on Thursday.

US Dollar looks to trade, data

The upside momentum in the greenback is motivating the index to advance for the third straight session so far this week and trade closer to the critical handle at 95.00 the figure.

Renewed trade jitters in the US-China front have revived after the White House threatened to raise tariffs to 25% from 10% on US imports of Chinese products worth $200 billion.

In addition, yields of the key US 10-year reference have retaken the psychological 3.00% handle on Wednesday, also collaborating with the sentiment around the buck.

DXY keeps the upside unabated so far this week after the FOMC remained on hold on Wednesday, as largely expected. However, the Fed’s statement highlighted the positive momentum of the economic growth and noted that inflation tracked by the PCE is closer to the Fed’s target.

In the data space, the usual weekly report on the US labour market is due seconded by Factory Orders for the month of June.

US Dollar relevant levels

As of writing the index is up 0.25% at 94.91 and a breakout of 95.03 (high May 29) would target 95.53 (high Jun.28) en route to 95.65 (2018 high Jul.19). On the downside, the next support lines up at 94.23 (low Jul.31) seconded by 94.22 (short-term support line) and finally 94.08 (low Jul.26).

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 tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.