26 Jul 2013
US Dollar Index consolidates below 82.00
FXstreet.com (Edinburgh) - The greenback, in terms of the US Dollar Index, is extending its weekly decline on Friday, as selling interest prevailed throughout the week.
DXY vs. FOMC
The bearish tone intensified despite the US consumer sentiment hit fresh highs at 85.1 measured by the Reuters/Michigan index, and the results from the US economy were not that bad during this week. Market chatter regarding the Fed will return to a dovish tone in its next meeting have been doing the rounds and keeping buyers at bay. “We are not sure that there will be any significant changes at all next week (no press conference is scheduled, after all) and tapering remains likely from September onwards… Now, the USD will remain soft ahead of the FOMC but may rebound (modestly) on short covering if the rumours are confirmed or more aggressively (position switch) if there is no big policy change”, assessed strategists at TD Securities.
DXY key levels
The index is now losing 0.46% at 81.67 with the next support at 81.60 followed by 81.25 and then 81.00. On the flip side, a breakout of 81.95 would open the door to 82.20 and finally 82.40.
DXY vs. FOMC
The bearish tone intensified despite the US consumer sentiment hit fresh highs at 85.1 measured by the Reuters/Michigan index, and the results from the US economy were not that bad during this week. Market chatter regarding the Fed will return to a dovish tone in its next meeting have been doing the rounds and keeping buyers at bay. “We are not sure that there will be any significant changes at all next week (no press conference is scheduled, after all) and tapering remains likely from September onwards… Now, the USD will remain soft ahead of the FOMC but may rebound (modestly) on short covering if the rumours are confirmed or more aggressively (position switch) if there is no big policy change”, assessed strategists at TD Securities.
DXY key levels
The index is now losing 0.46% at 81.67 with the next support at 81.60 followed by 81.25 and then 81.00. On the flip side, a breakout of 81.95 would open the door to 82.20 and finally 82.40.