Dollar Hit by Disappointing Retail Sales

This report is likely to rekindle concerns over the health of the US economy, consequently challenging the Dollar’s status as a safe-haven asset. While ongoing US-China trade developments and concerns over slowing global growth may send investors towards the Dollar, the question is for how long? With expectations elevated over the Fed cutting interest rates near the end of 2019, this could end up limiting the Dollar’s upside gains. Further signs of soft economic data from the United States, coupled with Federal Reserve adopting a cautious stance should invite Dollar bears back into the scene.

Price action suggests that the Dollar bulls are tired and running on fumes. Will the final quarter of the year mark the end of bulls run and return of the bears? Only time will tell.

Focusing on the technical picture, the Dollar Index is edging lower on the daily charts with prices trading around 97.50 as of writing. Sustained weakness below this level is seen opening a path lower towards 97.30 and 97.00, respectively.

Bitcoin finds comfort above $8000

It has certainly been a positive trading week for Bitcoin, with the cryptocurrency trading above $8000 as of writing.

Although the upward trend still remain a puzzle to most investors, it has not impacted the upside potential. With prices trading above $8000, further upside is on the cards with the next level of interest just above $9000 and $10,000 respectively.

USDJPY dips below 109.50

USDJPY edged lower this morning with prices dipping below 109.50. With US-China trade tensions still weighing on sentiment and safe-haven assets in demand, the USDJPY upside continues to face headwinds down the road. Sustained weakness below 109.60 is likely to trigger a move back towards 109.00. Alternatively, a breakout above 109.60 should open a path towards 110.00.

Commodity spotlight – Gold

Disappointing economic data from the United States and China have added to the negative mood yesterday, which in turn was a welcome development for safe-haven assets.

Gold bulls remain supported by trade uncertainty and concerns over slowing economic growth and this continues to be reflected in the metal’s valuation. Prices have the potential to test the psychological $1300 level again in the coming days as market caution accelerates the flight to safety.

Focusing on the technical picture, the precious metal is bullish on the daily charts. A solid weekly close above $1300 should invite a move higher towards $1310 and $1324, respectively. With the catalysts that can significantly reverse the ongoing flight-to-safety in the near term being limited, Gold bulls remain in the driver’s seat.

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