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20 Sep 2013
US Dollar Index lower around 80.35
FXstreet.com (Edinburgh) -The US Dollar Index, which tracks the world’s reserve against its major competitors, is posting marginal losses on Friday, hovering over 80.35/30.
DXY paring Wednesday’s pullback
Despite the current small retracement, the greenback managed to partially trim the sharp post-FOMC losses, bouncing off the psychological support at 80.00 and surpassing 80.40 yesterday. In the aftermath of the sharp sell off in the USD, Trevor Greetham, Director of Asset Allocation at Fidelity Investment, observed, “The Fed now “could” taper by year end and Bernanke is even talking down the importance of the unemployment rate as an indicator of when tightening may start and end. He seemed to be making policy on the fly, at one point accepting that they should maybe agree not to taper if inflation drops below a particular level… It won’t change the destination, higher bond yields and a stronger dollar, but we’ll get there with two steps forward and one step back”.
DXY levels to watch
At the moment the index is losing 0.02% at 80.36 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 barrier aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).
DXY paring Wednesday’s pullback
Despite the current small retracement, the greenback managed to partially trim the sharp post-FOMC losses, bouncing off the psychological support at 80.00 and surpassing 80.40 yesterday. In the aftermath of the sharp sell off in the USD, Trevor Greetham, Director of Asset Allocation at Fidelity Investment, observed, “The Fed now “could” taper by year end and Bernanke is even talking down the importance of the unemployment rate as an indicator of when tightening may start and end. He seemed to be making policy on the fly, at one point accepting that they should maybe agree not to taper if inflation drops below a particular level… It won’t change the destination, higher bond yields and a stronger dollar, but we’ll get there with two steps forward and one step back”.
DXY levels to watch
At the moment the index is losing 0.02% at 80.36 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 barrier aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).