21 Nov 2013
US Dollar Index dips below 81.00
FXstreet.com (Edinburgh) - The greenback, tracked by the US Dollar index, is now losing the grip and falling to session lows below the key support at 81.00.
DXY looks to the US data
The USD would remain under pressure on Thursday ahead of the US releases, as consenus expects Initial Claims and the Markit PMI to improve to 335K and 52.4, respectively while the regional manufacturing survey by the Philly Fed would ease to 15.0 for the month of November. The index thus retraces gains made post-FOMC minutes, after the Committee did not rule out the start of QE tapering in December. Strategist Jane Foley at Rabobank, observed “Despite the references to tapering in the Fed’s Oct minutes, we suspect that the Fed will remain dovish for some time and that the USD will take its time in clawing back to stronger levels. While this will push the ECB into retaining its dovish threats we expect that EUR/USD will remain well supported into year end”.
DXY levels to watch
The index is now losing 0.02% at 80.99 with the immediate support at 80.53 (low Nov.20) ahead of 80.38 (low Nov.6) and then 80.00 (psychological level). On the upside, a break above 81.48 (high Nov.8) would open the door to 81.50 (high Sep.16) and finally 82.50 (high Aug.2).
DXY looks to the US data
The USD would remain under pressure on Thursday ahead of the US releases, as consenus expects Initial Claims and the Markit PMI to improve to 335K and 52.4, respectively while the regional manufacturing survey by the Philly Fed would ease to 15.0 for the month of November. The index thus retraces gains made post-FOMC minutes, after the Committee did not rule out the start of QE tapering in December. Strategist Jane Foley at Rabobank, observed “Despite the references to tapering in the Fed’s Oct minutes, we suspect that the Fed will remain dovish for some time and that the USD will take its time in clawing back to stronger levels. While this will push the ECB into retaining its dovish threats we expect that EUR/USD will remain well supported into year end”.
DXY levels to watch
The index is now losing 0.02% at 80.99 with the immediate support at 80.53 (low Nov.20) ahead of 80.38 (low Nov.6) and then 80.00 (psychological level). On the upside, a break above 81.48 (high Nov.8) would open the door to 81.50 (high Sep.16) and finally 82.50 (high Aug.2).