15 Nov 2013
US Dollar index clings to 81.00
FXstreet.com (Edinburgh) - The US Dollar index, which tracks the greenback against its major competitors, is extending yesterdays gains around the 81.00 handle and trimming the weekly pullback at the same time.
DXY focus on US data
The index is posting the first negative weekly close out of the last three ones, although keeping the steep recovery from late October troughs below the 79.00 handle. Janet Yellen’s dovish testimony, emphasizing the virtues of the Fed’s ongoing stimulus programme, has plotted against a continuation of the USD rally this week, coming down from last week’s tops near 81.50. The US docket lacks appeal on Friday, with only industrial production figures and the flash manufacturing gauge by the Empire State index to be released. According to Tim Davis, Global Strategist at TD Securities, “Despite the seemingly unfazed performance of the ISM manufacturing survey during the early-October government shutdown, we highlight downside risks as this indicator has recently underperformed the ISM”.
DXY levels to watch
The index is now losing 0.02% at 80.98 and a breach of 80.38 (low Nov.6) would expose 80.00 (psychological level) and finally 79.31 (low Oct.25). On the upside, the initial resistance aligns at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5). a breach of 79.31 (low Oct.25) would open the door to 79.13 (low Oct.23) and then 78.93 (low Feb.1).
DXY focus on US data
The index is posting the first negative weekly close out of the last three ones, although keeping the steep recovery from late October troughs below the 79.00 handle. Janet Yellen’s dovish testimony, emphasizing the virtues of the Fed’s ongoing stimulus programme, has plotted against a continuation of the USD rally this week, coming down from last week’s tops near 81.50. The US docket lacks appeal on Friday, with only industrial production figures and the flash manufacturing gauge by the Empire State index to be released. According to Tim Davis, Global Strategist at TD Securities, “Despite the seemingly unfazed performance of the ISM manufacturing survey during the early-October government shutdown, we highlight downside risks as this indicator has recently underperformed the ISM”.
DXY levels to watch
The index is now losing 0.02% at 80.98 and a breach of 80.38 (low Nov.6) would expose 80.00 (psychological level) and finally 79.31 (low Oct.25). On the upside, the initial resistance aligns at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5). a breach of 79.31 (low Oct.25) would open the door to 79.13 (low Oct.23) and then 78.93 (low Feb.1).