DXY: Short covering underway – OCBC

Source Fxstreet

US Dollar (USD) consolidates with mild upticks this morning. DXY was last at 99.15 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

US-China trade talks may lead to de-escalation

"Daily momentum and RSI indicators are not showing a clear indication. Support at 98.35, 97.90 (2025 low). Resistance at 99.80 (21 DMA), 100.20 (50 DMA). We continue to flag the risk of USD short covering ahead of CPI, PPI reports (Wednesday, Thursday, respectively) and FOMC event risk next week."

"US CPI (on Wednesday) can be a binary risk. Consensus expects core CPI to pick up slightly to 0.3% MoM (vs. 0.2% prior) and headline CPI to hold steady at 0.2% MoM. Softer print may see USD softness resuming while firmer print may see USD shorts unwind further. On US-China trade talks, Scott Bessent told reporters yesterday they had a 'good meeting' while Lutnick called the discussions 'fruitful'."

"US signalled a willingness to remove restrictions on some tech exports in exchange for assurances that China is easing limits on rare earth shipments. We continue to monitor if the current round of US-China trade talks (extends into day 2 in London) leads to a more formalised agreement before the trade truce expires on 12 August. Positive developments on this front should continue to keep AxJs broadly supported."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Silver Price dives below $50.00 as the Dollar rallies Market expectations that the US and China will de-escalate trade tensions are boosting the US Dollar’s recovery and hurting precious metals.
Author  FXStreet
11 hours ago
Market expectations that the US and China will de-escalate trade tensions are boosting the US Dollar’s recovery and hurting precious metals.
placeholder
Japan's next finance minister could unsettle yen bearsThe dollar briefly fell to around 150.50 yen on a local media report that Katayama will get the job, before recouped losses to climb above 151 yen.
Author  FXStreet
11 hours ago
The dollar briefly fell to around 150.50 yen on a local media report that Katayama will get the job, before recouped losses to climb above 151 yen.
placeholder
Bitcoin Price Forecast: BTC falls below $108,000 amid economic uncertainty, ETF outflowsBitcoin (BTC) price trades below $108,000 at the time on Tuesday, after facing rejection from a previously broken trendline, signaling renewed selling pressure.
Author  FXStreet
12 hours ago
Bitcoin (BTC) price trades below $108,000 at the time on Tuesday, after facing rejection from a previously broken trendline, signaling renewed selling pressure.
placeholder
Forex Today: Markets remain focused on US-China, government shutdown newsEarly Tuesday, the USD Index clings to small gains above 98.50 and US stock index futures lose about 0.1% on the day.
Author  FXStreet
14 hours ago
Early Tuesday, the USD Index clings to small gains above 98.50 and US stock index futures lose about 0.1% on the day.
placeholder
BitMine and Strategy Capitalize on Market Weakness to Expand Crypto PortfoliosAfter the October crash shook global markets, crypto assets continued their volatile run, with Bitcoin (BTC) and Ethereum (ETH) still below their pre-crash levels.
Author  Beincrypto
14 hours ago
After the October crash shook global markets, crypto assets continued their volatile run, with Bitcoin (BTC) and Ethereum (ETH) still below their pre-crash levels.
Related Instrument
goTop
quote