27 Sep 2013
US Dollar Index in red around 80.40
FXstreet.com (Edinburgh) -The greenback, in terms of the US Dollar Index, is trading on the back foot on Friday, cashing up part of Thursday’s gains and back around 80.45/40.
DXY stabilizes around 80.40
The index is netting marginal gains on the week however, recovering ground after the deep pullback post-FOMC meeting dragged it to test the psychological support at 80.00. Amidst the ongoing debate regarding the debt ceiling and market chatter betting on the timing of the Fed’s tapering, Analyst Eric Green at TD Securities assessed, “The Fed could use December looms as a possibility, but the Fed hates tightening around Christmas. That reluctance is reinforced by low year-end liquidity. That puts January in play, but if the next Chairperson is not Yellen it may be hard to justify a regime switch at Bernanke’s last meeting. The implication is that the delay in September is a multi-meeting delay”.
DXY levels to watch
The index is now losing 0.16% at 80.40 and a break below 80.06 (low Sep.18) would open the door to 79.49 (low Feb.6) and then 78.93 (low Feb.1). On the upside, the initial hurdle aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).
DXY stabilizes around 80.40
The index is netting marginal gains on the week however, recovering ground after the deep pullback post-FOMC meeting dragged it to test the psychological support at 80.00. Amidst the ongoing debate regarding the debt ceiling and market chatter betting on the timing of the Fed’s tapering, Analyst Eric Green at TD Securities assessed, “The Fed could use December looms as a possibility, but the Fed hates tightening around Christmas. That reluctance is reinforced by low year-end liquidity. That puts January in play, but if the next Chairperson is not Yellen it may be hard to justify a regime switch at Bernanke’s last meeting. The implication is that the delay in September is a multi-meeting delay”.
DXY levels to watch
The index is now losing 0.16% at 80.40 and a break below 80.06 (low Sep.18) would open the door to 79.49 (low Feb.6) and then 78.93 (low Feb.1). On the upside, the initial hurdle aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).