8 Jul 2013
US Dollar Index retreats from highs
FXstreet.com (Edinburgh) - The greenback, tracked by the US Dollar Index, is trading on the back foot on Monday, taking a breather after hitting fresh highs in the vicinity of 84.80.
DXY would remain well supported
The USD keeps alive the rally sparked in late June, climbing from the area around 80.50 to the boundaries of 84.90 post-NFP last Friday, as chatter regarding the Fed’s ‘tapering’ has increased. “Overall a period of consolidation in a USD bullish environment will allow many to lighten up on their EM and FI positioning. We had this about 2 weeks ago, the drivers here ECB, BOE and eventually Fed are just stronger. It changes little to the eventual direction as the US economy steadily outperforms”, commented Sebastien Galy, Strategist at Societe Generale.
DXY levels to watch
The index is now losing 0.02% at 84.42 with the next support at 83.90 followed by 83.50 and finally 83.20. On the upside, a break above 84.70 would expose 85.00 and then 85.40.
DXY would remain well supported
The USD keeps alive the rally sparked in late June, climbing from the area around 80.50 to the boundaries of 84.90 post-NFP last Friday, as chatter regarding the Fed’s ‘tapering’ has increased. “Overall a period of consolidation in a USD bullish environment will allow many to lighten up on their EM and FI positioning. We had this about 2 weeks ago, the drivers here ECB, BOE and eventually Fed are just stronger. It changes little to the eventual direction as the US economy steadily outperforms”, commented Sebastien Galy, Strategist at Societe Generale.
DXY levels to watch
The index is now losing 0.02% at 84.42 with the next support at 83.90 followed by 83.50 and finally 83.20. On the upside, a break above 84.70 would expose 85.00 and then 85.40.