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15 Aug 2013
US Dollar Index losing its shine
FXstreet.com (Edinburgh) -After a quick spike beyond 81.90 post-jobs data, the greenback – gauged by the US Dollar Index – is trading back to the negative territory around 81.65/70.
DXY keeps the red on mixed data
The cheerful tone on multi-year lows of Initial Claims - level last seen in October 2007 - was rapidly eclipsed by the industrial production and regional manufacturing indices bellow forecasts, prompting the world’s reserve to scale back initial gains. Daragh Mayer, Senior FX Strategist at HSBC Research, assessed, “despite the market's recent focus on the prospects for Fed tapering, there is not yet strong evidence that this theme has started to dominate. This may change once market activity picks up again in September, but for now local news may be more important than global developments in driving FX rates”.
DXY levels to watch
The index is now losing 0.08% at 81.67 with the immediate support at 80.86 (low Aug.8) followed by 80.50 (low Jun.19) and then 80.27 (low Feb.20). On the upside, a break above 82.50 (high Aug.2) would expose 83.12 (high Jul.15) and then 84.75 (high Jul.9).
DXY keeps the red on mixed data
The cheerful tone on multi-year lows of Initial Claims - level last seen in October 2007 - was rapidly eclipsed by the industrial production and regional manufacturing indices bellow forecasts, prompting the world’s reserve to scale back initial gains. Daragh Mayer, Senior FX Strategist at HSBC Research, assessed, “despite the market's recent focus on the prospects for Fed tapering, there is not yet strong evidence that this theme has started to dominate. This may change once market activity picks up again in September, but for now local news may be more important than global developments in driving FX rates”.
DXY levels to watch
The index is now losing 0.08% at 81.67 with the immediate support at 80.86 (low Aug.8) followed by 80.50 (low Jun.19) and then 80.27 (low Feb.20). On the upside, a break above 82.50 (high Aug.2) would expose 83.12 (high Jul.15) and then 84.75 (high Jul.9).