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11 Sep 2013
US Dollar Index bouncing off lows
FXstreet.com (Edinburgh) -The greenback, gauged by the US Dollar Index, is gathering some traction now after bottoming out around the mid 81.00s.
DXY extends the downbeat sentiment
The risk-on trade continues to dominate markets this week, dragging the index to fresh 2-week lows in the area of 81.50 and fully retracing last week’s advance. The next key event for the greenback will be Friday’s US retail sales, with the headline expected to expand at a monthly pace of 0.3% during August. In light of next week’s crucial FOMC meeting, the research team at TD Securities assessed, “Our base case expectation for $10B (or less) in tapering coupled with dovish communication effort and reduction in unemployment rate forward guidance and or effort to elevate inflation trigger as a trigger for rate hikes sets up well for fixed income, and less well for the USD”.
DXY key levels
At the moment the index is retreating 0.35% and a break below 81.10 (low Aug.27) would expose 80.86 (low Aug.8) and finally 80.75 (low Aug.20). On the upside, the initial barrier lies at 82.50 (high Aug.2) followed by 82.67 (high Sep.5) and then 83.02 (high Jul.18).
DXY extends the downbeat sentiment
The risk-on trade continues to dominate markets this week, dragging the index to fresh 2-week lows in the area of 81.50 and fully retracing last week’s advance. The next key event for the greenback will be Friday’s US retail sales, with the headline expected to expand at a monthly pace of 0.3% during August. In light of next week’s crucial FOMC meeting, the research team at TD Securities assessed, “Our base case expectation for $10B (or less) in tapering coupled with dovish communication effort and reduction in unemployment rate forward guidance and or effort to elevate inflation trigger as a trigger for rate hikes sets up well for fixed income, and less well for the USD”.
DXY key levels
At the moment the index is retreating 0.35% and a break below 81.10 (low Aug.27) would expose 80.86 (low Aug.8) and finally 80.75 (low Aug.20). On the upside, the initial barrier lies at 82.50 (high Aug.2) followed by 82.67 (high Sep.5) and then 83.02 (high Jul.18).