4 Nov 2013
US Dollar Index retreats from highs
FXstreet.com (Edinburgh) -The US Dollar index, which tracks the greenback against its major competitors, is back to the 80.70/65 region on Monday, after hitting the boundaries of the 81.00 handle overnight.
DXY focus on US data
The USD is surrendering part of last week’s strong gains, sparked after the FOMC surprised investors delivering a balanced tone. Poor data from the euro area on Friday added more fuel to the rally, climbing as high as the key mark at 81.00 overnight. Later on during the European afternoon, US Factory Orders are due, with consensus expecting September’s orders to have expanded 1.8% inter-month. In light of the omnipresent debate regarding the tomong of the Fed’s tapering, Strategist Jane Foley at Rabobank commented “There is no doubt that the Fed will be concerned about the size of its balance sheet and the difficulties associated with unwinding QE. This topic is likely to dominate markets and the career of Fed Chair-in-waiting Janet Yellen over the next couple of years. However, the Fed is unlikely to starting tapering its QE unless economic data suggest there is sufficient strength in the US economic recovery… In our judgement the Fed is unlikely to start tapering its QE until March 2014”.
DXY key levels
The index is now losing 0.14% at 80.67 and a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, resistance levels align at
80.75 (high oct.16) followed by 81.02 (high Nov.4) and then 81.50 (high Sep.16).
DXY focus on US data
The USD is surrendering part of last week’s strong gains, sparked after the FOMC surprised investors delivering a balanced tone. Poor data from the euro area on Friday added more fuel to the rally, climbing as high as the key mark at 81.00 overnight. Later on during the European afternoon, US Factory Orders are due, with consensus expecting September’s orders to have expanded 1.8% inter-month. In light of the omnipresent debate regarding the tomong of the Fed’s tapering, Strategist Jane Foley at Rabobank commented “There is no doubt that the Fed will be concerned about the size of its balance sheet and the difficulties associated with unwinding QE. This topic is likely to dominate markets and the career of Fed Chair-in-waiting Janet Yellen over the next couple of years. However, the Fed is unlikely to starting tapering its QE unless economic data suggest there is sufficient strength in the US economic recovery… In our judgement the Fed is unlikely to start tapering its QE until March 2014”.
DXY key levels
The index is now losing 0.14% at 80.67 and a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, resistance levels align at
80.75 (high oct.16) followed by 81.02 (high Nov.4) and then 81.50 (high Sep.16).