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15 Jul 2013
US Dollar Index consolidates above 83.00
FXstreet.com (Edinburgh) -The greenback, measured by the US Dollar Index, is extending its intraday ascent, hovering over the area of 83.20/25 after dipping to 82.85/90.
DXY vs. US retail sales
Market participants will be closely watching June’s US retail sales, as a stronger than expected result will surely benefit the USD against the backdrop of the Fed’s tapering, weighting on EUR/USD and GBP/USD and being supportive of USD/JPY. In the opinion of Sebastien Galy, Strategist at Societe Generale, “Fed doves and hawks continue to battle it out to control the message, with only the group around Bernanke mattering… This makes for somewhat shallow rallies in UST and a resilient USD, but one needs strong US data to change the rules. Till then the top side in UST yields remains capped and with it the USD”.
DXY levels to consider
At the moment the index is up 0.42% at 83.28 with the next resistance at 83.65 followed by 83.90 and finally 84.10. On the flip side, a break below 82.85 would bring 82.50 and then 82.20.
DXY vs. US retail sales
Market participants will be closely watching June’s US retail sales, as a stronger than expected result will surely benefit the USD against the backdrop of the Fed’s tapering, weighting on EUR/USD and GBP/USD and being supportive of USD/JPY. In the opinion of Sebastien Galy, Strategist at Societe Generale, “Fed doves and hawks continue to battle it out to control the message, with only the group around Bernanke mattering… This makes for somewhat shallow rallies in UST and a resilient USD, but one needs strong US data to change the rules. Till then the top side in UST yields remains capped and with it the USD”.
DXY levels to consider
At the moment the index is up 0.42% at 83.28 with the next resistance at 83.65 followed by 83.90 and finally 84.10. On the flip side, a break below 82.85 would bring 82.50 and then 82.20.