22 Aug 2013
The DXY finishes near highs of the day post FOMC minutes
FXstreet.com (Barcelona) - After several intraday swings, the DXY ramped up into the close to finish near the highs of the session. Traders landed on higher yields / higher DXY as the likely result of future Fed actions.
DXY faces make or break time with news flow ready to ramp up
Apparently, the already-stale information contained in the FOMC meeting minutes was neutral enough to quell talk of any major delay in the commencement of the Fed’s tapering program. The DXY traded off the moves of the bond market for the most part, but was whipped around by global players moving things around in several currencies. Treasury yields were less indecisive than the DXY – they rallied hard, pulled back mildly and then began to ramp into the bond market’s close.
What’s the technical picture looking like for bond yields and the DXY?
Technicians say the 10-year Treasury yield has a little room left to the upside before a downside correction should take place. Their upside target for yields is 2.96% - 3.0%.
Those same technicians are saying the DXY may have a little downside left before the projected target of 80.51 will have been effectively tested. Once that level is tested, they say a fairly substantial up move to 85 – 88 is expected. The technicians say that perhaps we see rates and the DXY lift until rates hit their target; then a pullback in both so that the DXY hits its target; and then a major upside move for both after that.
DXY faces make or break time with news flow ready to ramp up
Apparently, the already-stale information contained in the FOMC meeting minutes was neutral enough to quell talk of any major delay in the commencement of the Fed’s tapering program. The DXY traded off the moves of the bond market for the most part, but was whipped around by global players moving things around in several currencies. Treasury yields were less indecisive than the DXY – they rallied hard, pulled back mildly and then began to ramp into the bond market’s close.
What’s the technical picture looking like for bond yields and the DXY?
Technicians say the 10-year Treasury yield has a little room left to the upside before a downside correction should take place. Their upside target for yields is 2.96% - 3.0%.
Those same technicians are saying the DXY may have a little downside left before the projected target of 80.51 will have been effectively tested. Once that level is tested, they say a fairly substantial up move to 85 – 88 is expected. The technicians say that perhaps we see rates and the DXY lift until rates hit their target; then a pullback in both so that the DXY hits its target; and then a major upside move for both after that.