DXY off highs, back to 98.50

FXStreet (Edinburgh) - The greenback, in terms of the US Dollar Index, is extending the upbeat tone vs. its main rivals on Tuesday, hovering over the mid-98.00s at the moment.

DXY propped up by Fed

The strong buying interest remains intact around the US dollar, as market expectations seem to be placing the first rate hike by the Fed in June (from September). The recent strong Payrolls in the US economy gave further oxygen to those bets, paving the way for further upside in the USD.

Nothing of note in the US calendar today, with only the Business Optimism index gauged by NFIB improving a tad to 98.0 in February from 97.9 previous.

DXY levels to consider

The index is now advancing 0.88% at 98.48 with the next resistance at 98.59 (high Mar.10) ahead of 99.00 (psychological level). On the downside, a breakdown of 97.77 (low Mar.10) would target 97.31 (low Mar.9) en route to 96.32 (low Mar.6).

USD/CHF fails at parity

USD/CHF extended gains during the American session, reaching its highest level since the SNB abandoned the franc cap, but faltered a couple of pips ahead of the parity level.
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UK Budget 2015 coming up - RBS

Analysts at RBS noted the looming general election and party political posturing – rather than the UK’s shaky fiscal fundamentals – will shape the content and tone of the 2015 Budget.
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