20 Aug 2013
US Dollar Index bounces off lows
FXstreet.com (Edinburgh) -The US Dollar Index, which tracks the world’s reserve against its major competitors, is falling for the second consecutive session, dragged lower by the prevailing risk appetite.
DXY vs. FOMC minutes
The biggest event for the greenback will be tomorrow’s FOMC minutes. Market consensus is slightly tilted to a dovish tone from Bernanke & Co., which carries the potential of intensifying the selling interest around the USD. “For the near term we maintain that Fed tapering will induce a structural USD uptrend. While markets have over the summer been pricing the forward-guidance messages from central banks, we look for the next 12 months to bring a test of the credibility of these. This could induce an increase in volatility”, assessed the research team at Danske Bank.
DXY levels to consider
At the moment the index is down 0.44% at 80.90 facing the next support at 80.86 (low Aug.8) ahead of 80.75 (low Aug.20) and then 80.50 (low Jun.19). On the upside, a surpass of 81.94 (high Aug.15) would bring of 82.50 (high Aug.2) and then 83.12 (high Jul.15).
DXY vs. FOMC minutes
The biggest event for the greenback will be tomorrow’s FOMC minutes. Market consensus is slightly tilted to a dovish tone from Bernanke & Co., which carries the potential of intensifying the selling interest around the USD. “For the near term we maintain that Fed tapering will induce a structural USD uptrend. While markets have over the summer been pricing the forward-guidance messages from central banks, we look for the next 12 months to bring a test of the credibility of these. This could induce an increase in volatility”, assessed the research team at Danske Bank.
DXY levels to consider
At the moment the index is down 0.44% at 80.90 facing the next support at 80.86 (low Aug.8) ahead of 80.75 (low Aug.20) and then 80.50 (low Jun.19). On the upside, a surpass of 81.94 (high Aug.15) would bring of 82.50 (high Aug.2) and then 83.12 (high Jul.15).