8 Nov 2013
US Dollar Index sidelined around 80.90
FXstreet.com (Edinburgh) -The US Dollar Index, which tracks the greenback against its major competitors, is posting meagre gains on Friday, ahead of October’s Payrolls.
DXY firmer on better US data, ECB
The index is extending its weekly gains for the second consecutive time so far, boosted by decent US data throughput the week and by the ECB’s decision to take the EMU’s lending benchmark to a record low at 0.25%. Ahead in the day, the crucial Non-farm Payrolls are due, with consensus pointing to 125K, lower than September’s 148K. In light of the positive data from the US GDP during the third quarter, Analyst James Knightley at ING assessed “at the margin this may help keep faint hopes of a December start to the Fed taper alive, but with the political backdrop remaining troubling we still doubt it will happen before the end of 1Q14. Indeed, we are not confident that a budget deal will be agreed in December and are therefore worried about another government shutdown in January“.
DXY levels to watch
The index is now up 0.05% at 80.86 with the initial resistance at 80.75 (high oct.16) followed by 81.02 (high Nov.4) and then 81.50 (high Sep.16). On the downside, a breach of 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012).
DXY firmer on better US data, ECB
The index is extending its weekly gains for the second consecutive time so far, boosted by decent US data throughput the week and by the ECB’s decision to take the EMU’s lending benchmark to a record low at 0.25%. Ahead in the day, the crucial Non-farm Payrolls are due, with consensus pointing to 125K, lower than September’s 148K. In light of the positive data from the US GDP during the third quarter, Analyst James Knightley at ING assessed “at the margin this may help keep faint hopes of a December start to the Fed taper alive, but with the political backdrop remaining troubling we still doubt it will happen before the end of 1Q14. Indeed, we are not confident that a budget deal will be agreed in December and are therefore worried about another government shutdown in January“.
DXY levels to watch
The index is now up 0.05% at 80.86 with the initial resistance at 80.75 (high oct.16) followed by 81.02 (high Nov.4) and then 81.50 (high Sep.16). On the downside, a breach of 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012).