6 Nov 2013
US Dollar Index retreats from highs
FXstreet.com (Edinburgh) -The greenback, gauged by the US Dollar index, is extending its erratic behavior this week, today partially retracing Tuesday’s important gains around 80.60/55.
DXY rangebound
The index would be posed for consolidation ahead in the day, amidst an almost empty docket from the US economy and a speech by Fed’s Pianalto. Recent solid US data have reignited the rumours regarding the timing of the Fed’s QE tapering. Analysts at Rabobank believe the Fed would remain ‘on-hold’ throughout the rest of the year, leaving the door open for the start of tapering at some point early in 2014: “we now expect a more gradual, less rapid, re-acceleration of the economy than before. It will be 2014 before we are able to see a number of months of economic data that may convince the FOMC that the recovery is continuing at a solid pace… All in all, we think that the FOMC will wait until at least the March meeting before it starts tapering”.
DXY key levels
The index is now losing 0.17% at 80.55 and a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, resistance levels align at
80.75 (high oct.16) followed by 81.02 (high Nov.4) and then 81.50 (high Sep.16).
DXY rangebound
The index would be posed for consolidation ahead in the day, amidst an almost empty docket from the US economy and a speech by Fed’s Pianalto. Recent solid US data have reignited the rumours regarding the timing of the Fed’s QE tapering. Analysts at Rabobank believe the Fed would remain ‘on-hold’ throughout the rest of the year, leaving the door open for the start of tapering at some point early in 2014: “we now expect a more gradual, less rapid, re-acceleration of the economy than before. It will be 2014 before we are able to see a number of months of economic data that may convince the FOMC that the recovery is continuing at a solid pace… All in all, we think that the FOMC will wait until at least the March meeting before it starts tapering”.
DXY key levels
The index is now losing 0.17% at 80.55 and a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, resistance levels align at
80.75 (high oct.16) followed by 81.02 (high Nov.4) and then 81.50 (high Sep.16).