27 Sep 2013
Euro-bearish news out of Italy gave DXY a short-term boost Thursday
FXstreet.com (Barcelona) - The DXY was boosted by news-driven weakness in both the euro and Yen Thursday.
DXY trading action to be driven by global data flow Friday
The DXY rallied Thursday on a combination of Yen and euro weakness. The Yen sell-off started early Thursday on headlines indicating that Japan was growing closer to implementing a corporate tax cut and more headlines that the Japanese government pension was making a rare portfoio allocation shift into riskier assets and out of Japanes Government Bonds.
The euro weakness began early in the European trading session on headlines from Italy where Italian MP Gasparri said PdL lawmakers are ready to quit if Berlusconi is ousted and agree to oppose the former premier's expulsion. The ramifications from this could be particularly damaging for the nation and therefore the euro.
Friday, traders will get to trade around Japanese and German inflation data, EuroZone sentiment, confidence and business climate data early in the session. Later Friday the US data flow will include personal income, consumption and spending data, the University of Michigan Consumer Confidence Survey as well as multiple “Fed Head” speeches.
Technical outlook for DXY
Technicians say the DXY’s upside correction may have topped out at approximately 80.63 Wednesday and Thursday. They say there is a chance that 80.63 resistance falls by the wayside and that the real ceiling is the 61.8% Fibonacci retracement line at 80.76. Once the short-term ceiling has been established / tested, the next move lower will be 79.93 with the next level of 79.62 just below that.
DXY trading action to be driven by global data flow Friday
The DXY rallied Thursday on a combination of Yen and euro weakness. The Yen sell-off started early Thursday on headlines indicating that Japan was growing closer to implementing a corporate tax cut and more headlines that the Japanese government pension was making a rare portfoio allocation shift into riskier assets and out of Japanes Government Bonds.
The euro weakness began early in the European trading session on headlines from Italy where Italian MP Gasparri said PdL lawmakers are ready to quit if Berlusconi is ousted and agree to oppose the former premier's expulsion. The ramifications from this could be particularly damaging for the nation and therefore the euro.
Friday, traders will get to trade around Japanese and German inflation data, EuroZone sentiment, confidence and business climate data early in the session. Later Friday the US data flow will include personal income, consumption and spending data, the University of Michigan Consumer Confidence Survey as well as multiple “Fed Head” speeches.
Technical outlook for DXY
Technicians say the DXY’s upside correction may have topped out at approximately 80.63 Wednesday and Thursday. They say there is a chance that 80.63 resistance falls by the wayside and that the real ceiling is the 61.8% Fibonacci retracement line at 80.76. Once the short-term ceiling has been established / tested, the next move lower will be 79.93 with the next level of 79.62 just below that.