11 Jul 2013
US Dollar Index regains 83.00
FXstreet.com (Edinburgh) -After dipping to fresh weekly lows around 82.40 on a dovish tone from Bernanke, the greenback - in terms of the US Dollar Index - picked up pace and regained the key resistance at 83.00.
DXY vs. Fed’s tapering
In essence, there was nothing really new about Bernanke’s speech, but the extreme positioning in the USD plus the high hopes deposited on the next September meeting as the kick-off point for the Fed to start scaling back its monthly purchases of assets were the decisive factors behind yesterday’s and today’s violent move. In the view of HSBC Global Research, “We estimate Fed Breakeven Levels to see which level of economic data would encourage the Fed to begin moderating its QE programme. Currently all of the data releases are slightly above their breakeven level. Should they remain so, the USD will continue to power ahead’.
DXY levels to watch
As of writing, the index is losing 0.50% at 83.03 with the next support at 82.50 followed by 82.20 and finally 81.60. On the upside, a breakout of 83.35 would open the door to 83.70 ahead of 84.05.
DXY vs. Fed’s tapering
In essence, there was nothing really new about Bernanke’s speech, but the extreme positioning in the USD plus the high hopes deposited on the next September meeting as the kick-off point for the Fed to start scaling back its monthly purchases of assets were the decisive factors behind yesterday’s and today’s violent move. In the view of HSBC Global Research, “We estimate Fed Breakeven Levels to see which level of economic data would encourage the Fed to begin moderating its QE programme. Currently all of the data releases are slightly above their breakeven level. Should they remain so, the USD will continue to power ahead’.
DXY levels to watch
As of writing, the index is losing 0.50% at 83.03 with the next support at 82.50 followed by 82.20 and finally 81.60. On the upside, a breakout of 83.35 would open the door to 83.70 ahead of 84.05.