30 Oct 2013
US Dollar Index capped by 79.70
FXstreet.com (Edinburgh) -The greenback, tracked by the US Dollar index, is giving away some ground on Wednesday, hovering over 79.60 ahead of the FOMC meeting.
DXY eyes on Bernanke & Co.
The biggest event for the greenback this week will definitely be today’s FOMC meeting. Market consensus expects a continuation of the recent neutral-to-dovish tone from the statement, which could ultimately weigh on the USD. According to BBH Global Currency Strategy Team, “We believe the dollar’s recent gains will most likely start to erode after the Fed delivers a “steady as she goes” decision today. Market expectations for tapering are being pushed out to Q1 2014. There is no press conference after this meeting, limiting the potential for market-moving (mis)communications. The December 17/18 meeting, however, will have a press conference as well as updated economic projections”.
DXY key levels
The index is now losing 0.10% at 79.54 and a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, resistance levels align at
80.18 (high Oct.4) ahead of 80.64 (high Sep.26) and finally 80.75 (high oct.16).
DXY eyes on Bernanke & Co.
The biggest event for the greenback this week will definitely be today’s FOMC meeting. Market consensus expects a continuation of the recent neutral-to-dovish tone from the statement, which could ultimately weigh on the USD. According to BBH Global Currency Strategy Team, “We believe the dollar’s recent gains will most likely start to erode after the Fed delivers a “steady as she goes” decision today. Market expectations for tapering are being pushed out to Q1 2014. There is no press conference after this meeting, limiting the potential for market-moving (mis)communications. The December 17/18 meeting, however, will have a press conference as well as updated economic projections”.
DXY key levels
The index is now losing 0.10% at 79.54 and a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, resistance levels align at
80.18 (high Oct.4) ahead of 80.64 (high Sep.26) and finally 80.75 (high oct.16).