22 Aug 2013
US Dollar Index bounces off lows
FXstreet.com (Edinburgh) -The world’s reserve, gauged by the US Dollar Index, is returning to the area of 81.45/50 after a bout of selling interest dragged the index to lows in sub 81.40 levels.
DXY bolstered by FOMC
The USD found extra support after Wednesday’s FOMC meeting caught markets off-guard exhibiting an unexpected hawkish bias. The index is now advancing for a second straight session, partially trimming early August’s sharp decline. Back to the FOMC minutes, BBH Global Currency Strategy Team assessed, “we emphasise that there has been no commitment made in terms of either timing or amount of tapering, which leaves many investors exposed to disappointment when the September meeting comes around. The economic performance of the US is quite mixed at present and there is still the risk that the Fed cuts its growth forecasts for this year – even if still sticking to the view the economy is accelerating”.
DXY support/resistance levels
At the moment the index is up 0.16% at 81.44 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 bolstered by FOMC
The USD found extra support after Wednesday’s FOMC meeting caught markets off-guard exhibiting an unexpected hawkish bias. The index is now advancing for a second straight session, partially trimming early August’s sharp decline. Back to the FOMC minutes, BBH Global Currency Strategy Team assessed, “we emphasise that there has been no commitment made in terms of either timing or amount of tapering, which leaves many investors exposed to disappointment when the September meeting comes around. The economic performance of the US is quite mixed at present and there is still the risk that the Fed cuts its growth forecasts for this year – even if still sticking to the view the economy is accelerating”.
DXY support/resistance levels
At the moment the index is up 0.16% at 81.44 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).