The US dollar index (DXY) which measures the greenback against a basket of other currencies held steady above 103 as investors await US inflation data this week for clues on the Federal Reserve's interest rate hike trajectory.
 
The greenback got a boost after solid employment data supported expectations that the US central bank or the Federal Reserve (The Fed) will raise interest rates further.
 
The DXY rose 0.69% last week to 103.63 with a low of 102.64 and a high of 103.96.
 
In other news, gold is in a consolidation phase amid the hawkish stance from the US central bank (The Fed) regarding higher interest rates following solid employment data.
 
Meanwhile, the market is waiting for US inflation data this week which could influence the Federal Reserve's monetary policy trajectory. Gold is considered a hedge against inflation, but higher interest rates tend to increase the opportunity cost of holding non-yielding assets.
 
"Next week's US CPI report could play a big role in where gold moves next, with high US Treasury yields potentially breaking below the $1,850 an ounce support," Michael Hewson, chief market analyst at CMC Markets, said in a note.
 
Crude oil prices are still supported in the week ahead by rising demand from China. Meanwhile, Russia will cut oil output by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said on Friday, following Western bans on Moscow's crude and oil products imposed in recent months.
 
The announced output cuts amount to about 5% of Russia's latest crude output, which the Paris-based International Energy Agency estimates fell to 9.77 million barrels per day in December.



­

EURUSD

 

Forex Weekly Analysis for the Euro pair remains among the weakest rivals of the US Dollar, in last week's trading down by 1.13% at 1.06760. The sell-off in the common currency pair was triggered as investors shifted their focus to the release of the US CPI Index, due on Tuesday. The euro's pressure was also boosted by the release of Nonfarm Payrolls showing that the US economy added 517 thousand jobs in January.

 

SELL

BUY

STOP

1.05970

1.07300

LIMIT

-

-

TARGET

1000

1000

 

PREVIOUS RANGE

OPEN

HIGH

LOW

CLOSE

PREV.CLOSE

CHANGE

%CHANGE

1.07812

1.07983

1.06657

1.06760

1.07980

-0.01220

-1.13%

DAILY PIVOT POINT

R3

R2

R1

PIVOT

S1

S2

S3

1.09270

1.08630

1.07940

1.07300

1.06620

1.05970

1.05290

 





GBPUSD

The pound extended losses toward $1.20, hovering around its weakest level since Jan. 6, as investors rushed to the dollar following a better-than-expected U.S. jobs report. In addition, the gloomy outlook for the British economy in the coming months coupled with high inflation keeps the prospect of further gains for the pound somewhat limited in the short term.

 

SELL

BUY

STOP

1.19250

1.21570

LIMIT

-

-

TARGET

1000

1000

 

PREVIOUS RANGE

OPEN

HIGH

LOW

CLOSE

PREV.CLOSE

CHANGE

%CHANGE

1.20284

1.21932

1.19606

1.20546

1.20520

0.00026

0.02%

DAILY PIVOT POINT

R3

R2

R1

PIVOT

S1

S2

S3

1.23900

1.22920

1.21570

1.20590

1.19250

1.18260

1.16920






AUDUSD

AUD/USD came under fresh pressure amid mixed signals from the Reserve Bank of Australia’s (RBA) Statement of Monetary Policy (SoMP) on Friday. The RBA SoMP revised Australia’s economic forecasts and mentioned the need for further interest rate hikes. The Reserve Bank of Australia raised interest rates for the ninth straight meeting and said “further increases” would be needed, signaling more than one hike.

 

SELL

BUY

STOP

0.68280

0.69830

LIMIT

-

-

TARGET

1000

1000

 

PREVIOUS RANGE

OPEN

HIGH

LOW

CLOSE

PREV.CLOSE

CHANGE

%CHANGE

0.68923

0.70105

0.68548

0.69201

0.69225

-0.00024

-0.03%

DAILY PIVOT POINT

R3

R2

R1

PIVOT

S1

S2

S3

0.71390

0.70750

0.69830

0.69190

0.68280

0.67630

0.66720





USDCHF

USD/CHF was quite stable in last week's trading, closing up 0.21%. However, investors continue to gauge the prospects for monetary policy tightening by the Swiss National Bank (SNB). A sharp slowdown in the country's inflation has limited expectations of how far the SNB will raise its benchmark borrowing costs. December's reading showed inflation slowing to 2.8%, below the bank's projection of 3%.

 

SELL

BUY

STOP

0.91880

0.93180

LIMIT

-

-

TARGET

1000

1000

 

PREVIOUS RANGE

OPEN

HIGH

LOW

CLOSE

PREV.CLOSE

CHANGE

%CHANGE

0.92725

0.92899

0.91597

0.92356

0.92550

-0.00194

-0.21%

DAILY PIVOT POINT

R3

R2

R1

PIVOT

S1

S2

S3

0.94490

0.93690

0.93180

0.92390

0.91880

0.91090

0.90580






USDJPY

The Japanese yen held steady near 131 per dollar after facing increased volatility amid reports that the government has approached Bank of Japan Deputy Governor Masayoshi Amamiya about replacing Haruhiko Kuroda as central bank chief. The yen weakened last week as strong U.S. jobs data raised expectations the Fed has more room to raise interest rates.

 

SELL

BUY

STOP

130.380

133.480

LIMIT

-

-

TARGET

1000

1000

 

PREVIOUS RANGE

OPEN

HIGH

LOW

CLOSE

PREV.CLOSE

CHANGE

%CHANGE

132.446

132.897

129.801

131.423

131.180

0.243

0.18%

DAILY PIVOT POINT

R3

R2

R1

PIVOT

S1

S2

S3

136.580

134.740

133.480

131.640

130.380

128.540

127.290





XUL (LOCO LONDON GOLD)

Gold prices are in a consolidation phase as investors brace for further interest rate hikes from the U.S. Federal Reserve, with focus now shifting to inflation data due this week that could be a key factor in the central bank’s monetary policy plans. Gold is trying to digest the central bank’s comments and how many more rate hikes we’re likely to see, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

 

SELL

BUY

STOP

1845.60

1883.00

LIMIT

-

-

TARGET

20.00

20.00

 

PREVIOUS RANGE

OPEN

HIGH

LOW

CLOSE

PREV.CLOSE

CHANGE

%CHANGE

1864.54

1890.03

1852.61

1863.83

1865.71

-1.88

-0.10%

DAILY PIVOT POINT

R3

R2

R1

PIVOT

S1

S2

S3

1920.40

1905.20

1883.00

1867.80

1845.60

1830.40

1808.20






OIL (CLSK)

Crude oil prices have risen amid rising demand from China. Meanwhile, Russia will cut oil output by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said Friday, following a Western-Bloc ban on Moscow’s crude and oil products imposed in recent months. The announced output cuts amount to about 5% of Russia’s latest crude output, down to 9.77 million barrels per day in December.

 

SELL

BUY

STOP

77.46

82.68

LIMIT

-

-

TARGET

2.00

2.00

 

PREVIOUS RANGE

OPEN

HIGH

LOW

CLOSE

PREV.CLOSE

CHANGE

%CHANGE

73.22

80.30

72.24

79.83

73.17

6.66

9.10%

DAILY PIVOT POINT

R3

R2

R1

PIVOT

S1

S2

S3

90.74

85.52

82.68

77.46

74.62

69.40

66.56