4 Sep 2013
US Dollar Index off peaks, around 82.40
FXstreet.com (Edinburgh) -It seems the USD rally is taking a breather on Wednesday, dragging the US Dollar index to post meagre gains for the first time in six sessions after hitting multi-week highs on Tuesday.
DXY propped up by US data, Fed’s taper
The recent positive results from the US economy plus higher yields from the Treasuries have been supporting the string of positive daily closes for the greenback, prompting investors to start pricing in the high probability that the Fed might start its QE tapering this month, with the announcement most likely in the next FOMC meeting on 17-18th September. Jane Foley, Senior Currency Strategist at Rabobank, assessed, “with long USD positions having been reduced, the USD stands to find support into the final months of the year from the anticipated reduction in QE, from the improving US economic outlook and the resultant upward push in treasury yields. This view found support in the positive reaction to the USD following yesterday’s better than expected ISM report”.
DXY support/resistance levels
As of writing the index is down 0.01% at 82.35 and a breach of 81.10 (low Aug.27) would expose 80.86 (low Aug.8) and finally 80.75 (low Aug.20). On the upside, the next hurdle aligns at 82.50 (high Aug.2) ahead of 83.12 (high Jul.15) and then 84.75 (high Jul.9).
DXY propped up by US data, Fed’s taper
The recent positive results from the US economy plus higher yields from the Treasuries have been supporting the string of positive daily closes for the greenback, prompting investors to start pricing in the high probability that the Fed might start its QE tapering this month, with the announcement most likely in the next FOMC meeting on 17-18th September. Jane Foley, Senior Currency Strategist at Rabobank, assessed, “with long USD positions having been reduced, the USD stands to find support into the final months of the year from the anticipated reduction in QE, from the improving US economic outlook and the resultant upward push in treasury yields. This view found support in the positive reaction to the USD following yesterday’s better than expected ISM report”.
DXY support/resistance levels
As of writing the index is down 0.01% at 82.35 and a breach of 81.10 (low Aug.27) would expose 80.86 (low Aug.8) and finally 80.75 (low Aug.20). On the upside, the next hurdle aligns at 82.50 (high Aug.2) ahead of 83.12 (high Jul.15) and then 84.75 (high Jul.9).