USD looks modestly downbeat, with risk sentiment mixed in the global financial markets
The US dollar is back under pressure on Thursday after a two-day recovery from fresh late-August lows registered around 103.18 earlier in the week. As such, the USD index struggles to shrug off last week’s selling pressure in the aftermath of a weaker-than-expected US inflation report. After finding support around the mentioned lows, the USD erased some losses, staying on the defensive, however. The US currency struggles to attract more decisive buying interest as traders remain cautious after a sell-off. The DXY is oscillating around 103.70 in early European deals, looking modestly downbeat, with risk sentiment mixed in the global financial markets. Against this backdrop, EURUSD came off local lows to turn positive today after a two-day slide from early-August highs seen around 1.0965 this week. The pair is changing hands around 1.0907 as of writing, up 0.2% on the day. In the immediate term, the euro needs to hold above 1.0900 in order to extend the ascent.
The pound turned positive on Thursday after a slide witnessed during the previous session amid some recovery in the USD. Earlier in the week, the pair peaked just below the 1.2560 zone that capped the bullish momentum and triggered some profit-taking. Still, the pair stays above the 20-DMA that has been capping losses this week. In early European deals, the cable has settled in positive territory, holding above the mentioned SMA, today at 1.2450. As such, the cable turned slightly upbeat now after the recent break below the 100-DMA. During the European deals, the pair keeps trying to attract more demand. The daily RSI looks bullish in neutral territory, suggesting the pair could see more upside attempts in the immediate term. In recent trading, GBPUSD was changing hands around 1.2515, up 0.19% on the day. On the flip side, the immediate significant support is now represented by the 1.2500 zone, followed by the 1.2460 intermediate barrier on the way towards 1.2400. On the upside, a decisive ascent above 1.2550 would pave the way to another rally.
The USDJPY pair reversed north after a brief plunge to mid-September lows around 147.15 earlier in the week. However, the greenback failed to preserve the upside momentum on Thursday after finding a local bottom. After a brief recovery, the pair has settled around the 149.00 figure that remains in the market focus for the time being. After finding support, the dollar holds in negative territory during the European trading hours on Thursday. Also, the pair stays well below the 20-DMA, suggesting downside risks still persist for the time being. The dollar was last seen changing hands around 149.02, down 0.32% on the day. Now, the greenback needs to decisively regain the 149.00 mark in order to resume the ascent. The daily RSI looks bearish in neutral territory, suggesting the dollar could see some downside momentum in the immediate term. On the hourly timeframes, the technical picture looks neutral, with prices stuck between the key SMAs.
The price of gold stays bullish after a short-lived jump to local highs above the $2,000 psychological level this week. Earlier, the metal regained the directionless 20-DMA that turned back into support. As such, the technical picture has improved again even as the bullion is now slightly below the $2,000 figure. After last week’s brief dip to the $1,930 zone for the first time in nearly a month, the XAUUSD bounced back above the two key hurdles represented by the 20-DMA and the $2,000 mark, staying upbeat during the European hours on Thursday. Should gold overcome the $2,000 figure in the near term, a stronger rally could be expected. If the pressure reemerges any time soon, the bullion could see another retreat in the days to come. Gold was last seen changing hands around $1,997, up 0.29% on the day. On the weekly timeframes, the bullion stays upbeat, trading in positive territory after last week’s recovery. On the upside, the immediate significant target is now represented by the $2,007 region that capped the ascent this week.