8 Aug 2013
US Dollar index bounces off lows
FXstreet.com (Edinburgh) -After falling to session lows around 80.85, the US Dollar index managed to pick up pace an attempt to regain the key 81.00 handle.
DXY in 2-month lows
The greenback is prolonging it weekly decline, trading in levels last seen in late June below 81.00 the figure, as the Fed’s tapering rumours lost vigour, opening the door for further unwinding of USD longs. According to Jane Foley, Senior Currency Strategist at Rabobank, “It took some time for the Fed to successfully communicate to the market that tapering of it asset purchase programme would not represent a tightening and that policy settings would remain extremely accommodate for some time to come. While there is still speculation that the Fed could start to taper policy in September, there is currently a stronger sense that the FOMC is in no rush and that tapering may not start until December”.
DXY key levels
The index is now losing 0.42% at 80.93 with the next support at 80.50 (low Jun.19) followed by 80.27 (low Feb.20) and finally 79.84 (low Feb.19). On the flip side, a break above 82.50 (high Aug.2) would expose 83.12 (high Jul.15) and then 84.75 (high Jul.9).
DXY in 2-month lows
The greenback is prolonging it weekly decline, trading in levels last seen in late June below 81.00 the figure, as the Fed’s tapering rumours lost vigour, opening the door for further unwinding of USD longs. According to Jane Foley, Senior Currency Strategist at Rabobank, “It took some time for the Fed to successfully communicate to the market that tapering of it asset purchase programme would not represent a tightening and that policy settings would remain extremely accommodate for some time to come. While there is still speculation that the Fed could start to taper policy in September, there is currently a stronger sense that the FOMC is in no rush and that tapering may not start until December”.
DXY key levels
The index is now losing 0.42% at 80.93 with the next support at 80.50 (low Jun.19) followed by 80.27 (low Feb.20) and finally 79.84 (low Feb.19). On the flip side, a break above 82.50 (high Aug.2) would expose 83.12 (high Jul.15) and then 84.75 (high Jul.9).