5 Sep 2013
US Dollar Index retreats from highs
FXstreet.com (Edinburgh) -The greenback, in terms of the US Dollar index, resumed its weekly rally on Thursday after decent data from the US economy plus a dovish tone from the ECB boosted the risk aversion.
DXY extending the rally
Better-than-expected data from the US labour market and ISM non-manufacturing intensifies the exodus to the safe haven USD on Thursday, against the backdrop of the 10-y Treasuries hovering over 3% and signalling better chances of the Fed starting its QE taper this month. According to Westpac Global Strategy Group, “We retain a mild upward bias on DXY over the month ahead but neutral on the week given payrolls probably won’t be conclusive for the Fed decision in two weeks”.
DXY relevant levels
As of writing the index is up 0.50%% at 82.57 with the next hurdle at 83.12 (high Jul.15) followed by 83.45 (high Jul15) and then 84.75 (high Jul.9). On the downside, a break below 81.10 (low Aug.27) would expose 80.86 (low Aug.8) and finally 80.75 (low Aug.20).
DXY extending the rally
Better-than-expected data from the US labour market and ISM non-manufacturing intensifies the exodus to the safe haven USD on Thursday, against the backdrop of the 10-y Treasuries hovering over 3% and signalling better chances of the Fed starting its QE taper this month. According to Westpac Global Strategy Group, “We retain a mild upward bias on DXY over the month ahead but neutral on the week given payrolls probably won’t be conclusive for the Fed decision in two weeks”.
DXY relevant levels
As of writing the index is up 0.50%% at 82.57 with the next hurdle at 83.12 (high Jul.15) followed by 83.45 (high Jul15) and then 84.75 (high Jul.9). On the downside, a break below 81.10 (low Aug.27) would expose 80.86 (low Aug.8) and finally 80.75 (low Aug.20).