12 Nov 2013
US Dollar index buoyant above 81.00
FXstreet.com (Edinburgh) -The US Dollar index, which tracks the greenback against its major competitors, remains well bid beyond the 81.00 handle on Tuesday.
DXY extends the weekly advance
Despite netting an even week so far, the USD has rallied for the last two weeks, leapfrogging from levels near 78.20 in late October to post-Payrolls highs in the boundaries of 81.50. John Shin, FX Strategist at BAML, assessed, “The USD will likely remain the dominant global reserve currency despite concerns around expansionary Fed policy and QE… The USD’s role is likely to remain unchanged for the time being, especially given the lack of external competitors that could supplant the dollar. The more possible drivers in shifting the USD’s dominant global reserve currency status are negative forces emanating from within the US, although they still appear highly unlikely”.
DXY levels to watch
The index is now advancing 0.13% at 81.19 with the next resistance at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5). On the flip side, a dip beyond
80.38 (low Nov.6) would expose 80.00 (psychological level) and finally 79.31 (low Oct.25).
DXY extends the weekly advance
Despite netting an even week so far, the USD has rallied for the last two weeks, leapfrogging from levels near 78.20 in late October to post-Payrolls highs in the boundaries of 81.50. John Shin, FX Strategist at BAML, assessed, “The USD will likely remain the dominant global reserve currency despite concerns around expansionary Fed policy and QE… The USD’s role is likely to remain unchanged for the time being, especially given the lack of external competitors that could supplant the dollar. The more possible drivers in shifting the USD’s dominant global reserve currency status are negative forces emanating from within the US, although they still appear highly unlikely”.
DXY levels to watch
The index is now advancing 0.13% at 81.19 with the next resistance at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5). On the flip side, a dip beyond
80.38 (low Nov.6) would expose 80.00 (psychological level) and finally 79.31 (low Oct.25).