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16 Dec 2013
DXY opens week on downside as world awaits Fed QE news mid-week
FXstreet.com (Barcelona) - The DXY will have plenty of data points that might contribute to some short-term moves in the beginning of the week. However, those all may be appetizers for the big volatility feast that could follow the Fed’s QE announcement.
Heavy US data flow likely to be the main driver of Monday’s trading
The DXY opened lower this week - mainly due to Yen strength - but it could easily see major upside if the Fed decides to implement its tapering plans this week / month. Before the Fed's fireworks later in the week, there are plenty of data points due out - including Monday's market movers:
• German Manufacturing & Services PMIs
• Eurozone Manufacturing, Services and Composite PMIs
• US Non-Farm Productivity data
• US Unit Labor Costs
• US NY Empire State Manufacturing Index
• US Markit Manufacturing PMI
• US Net Long Term TIC Flows
• US Industrial Production & Capacity Utilization
Technical outlook for the DXY
Technicians say the DXY may have set a short-term low at 79.75 support Thursday. Below that level, there is additional support at 79.63 and at the ultimate “line in the sand” at 79. Resistance for DXY comes in at the previous support of 80.53 and then at round number resistance at 81.
Heavy US data flow likely to be the main driver of Monday’s trading
The DXY opened lower this week - mainly due to Yen strength - but it could easily see major upside if the Fed decides to implement its tapering plans this week / month. Before the Fed's fireworks later in the week, there are plenty of data points due out - including Monday's market movers:
• German Manufacturing & Services PMIs
• Eurozone Manufacturing, Services and Composite PMIs
• US Non-Farm Productivity data
• US Unit Labor Costs
• US NY Empire State Manufacturing Index
• US Markit Manufacturing PMI
• US Net Long Term TIC Flows
• US Industrial Production & Capacity Utilization
Technical outlook for the DXY
Technicians say the DXY may have set a short-term low at 79.75 support Thursday. Below that level, there is additional support at 79.63 and at the ultimate “line in the sand” at 79. Resistance for DXY comes in at the previous support of 80.53 and then at round number resistance at 81.