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26 Aug 2013
US Dollar Index up around 81.40
FXstreet.com (Edinburgh) - The greenback, tracked by the US Dollar Index, is recovering ground after the negative session last Friday, hovering over session highs around 81.40/45.
DXY focus on US data
It will be an interesting week for the USD, with Durable Goods Orders due later today. Market consensus expects orders to contract 3.0% in July and expand 0.6% excluding the Transportation sector. Fed’s tapering chatter continues to dominate the sentiment amongst investors, as we approach the key FOMC September meeting. In the opinion of Gareth Berry and Geoffrey Yu, Strategists at UBS, “Our economists continue to expect the Fed to announce tapering at the next FOMC meeting, but without specifying an exact execution date or underlying pace as maximum flexibility is still needed. However, the act alone still leaves the Fed moving outright towards policy normalisation, with the prospect of an end to QE outright mid-next year”.
DXY key levels
At the moment the index is up 0.07% at 81.42 and a surpass of 81.94 (high Aug.15) would bring of 82.50 (high Aug.2) and then 83.12 (high Jul.15). On the downside, the initial support lies at 80.86 (low Aug.8) ahead of 80.75 (low Aug.20) and then 80.50 (low Jun.19).
DXY focus on US data
It will be an interesting week for the USD, with Durable Goods Orders due later today. Market consensus expects orders to contract 3.0% in July and expand 0.6% excluding the Transportation sector. Fed’s tapering chatter continues to dominate the sentiment amongst investors, as we approach the key FOMC September meeting. In the opinion of Gareth Berry and Geoffrey Yu, Strategists at UBS, “Our economists continue to expect the Fed to announce tapering at the next FOMC meeting, but without specifying an exact execution date or underlying pace as maximum flexibility is still needed. However, the act alone still leaves the Fed moving outright towards policy normalisation, with the prospect of an end to QE outright mid-next year”.
DXY key levels
At the moment the index is up 0.07% at 81.42 and a surpass of 81.94 (high Aug.15) would bring of 82.50 (high Aug.2) and then 83.12 (high Jul.15). On the downside, the initial support lies at 80.86 (low Aug.8) ahead of 80.75 (low Aug.20) and then 80.50 (low Jun.19).