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7 Oct 2013
US Dollar Index clinging to 80.00
FXstreet.com (Edinburgh) -The greenback, tracked by the US Dollar Index, is trading on the back footing at the beginning of the week, hovering over the key 80.00 handle.
DXY focus on the US shutdown
The world’s reserve is giving away part of last Friday’s important advance to the vicinity of 80.20 after bottoming out at multi-month troughs around 79.65/60 on Thursday. In the meantime, the US administrative paralysis continues to be the main catalyst for the USD in the very near term. According to Jane Foley, Senior Strategist at Rabobank, “There is some opinion in the market that the USD’s status as a safe haven will eventually win the day. Near-term, we expect the USD index to retain a downside bias based mainly on the perception that the Fed could decide that delaying tapering of QE is necessary to protect the economy from any negative fallout from the impasse”.
DXY key levels
The index is now losing 0.16% at 79.99 and a breakdown of 79.49 (low Feb.6) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, the initial hurdle aligns at 80.18 (high Oct.4) ahead of 80.64 (high Sep.26) and finally 81.35 (high Sep.17).
DXY focus on the US shutdown
The world’s reserve is giving away part of last Friday’s important advance to the vicinity of 80.20 after bottoming out at multi-month troughs around 79.65/60 on Thursday. In the meantime, the US administrative paralysis continues to be the main catalyst for the USD in the very near term. According to Jane Foley, Senior Strategist at Rabobank, “There is some opinion in the market that the USD’s status as a safe haven will eventually win the day. Near-term, we expect the USD index to retain a downside bias based mainly on the perception that the Fed could decide that delaying tapering of QE is necessary to protect the economy from any negative fallout from the impasse”.
DXY key levels
The index is now losing 0.16% at 79.99 and a breakdown of 79.49 (low Feb.6) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, the initial hurdle aligns at 80.18 (high Oct.4) ahead of 80.64 (high Sep.26) and finally 81.35 (high Sep.17).