10 Jun 2013
US Dollar Index consolidates losses below 82.00
FXstreet.com (Barcelona) - The greenback, in terms of the US Dollar Index, is grinding lower at the beginning of the trading week, remaining below the key mark at 82.00.
The selling pressure in the USD intensified after the UST 10-year yields failed to extend its recent rally on Monday, sparking a quick unwinding of USD longs. “If the FOMC are in fact preparing for a gradual “exit strategy” from QE, the latest read on the US employment situation taken alone raises the risk, in our view, that this exit strategy will need to be deployed before year-end”, commented Stephen Gallo, Strategist at BMO. The expert also highlighted the 80.00 mark as a critical level and “buy on dips barrier”.
As of writing, the index is losing 0.20% at 81.72 with the next support at 81.55, 81.05 and 80.65 while resistance levels are located at 82.10, 82.50 and 83.00.
The selling pressure in the USD intensified after the UST 10-year yields failed to extend its recent rally on Monday, sparking a quick unwinding of USD longs. “If the FOMC are in fact preparing for a gradual “exit strategy” from QE, the latest read on the US employment situation taken alone raises the risk, in our view, that this exit strategy will need to be deployed before year-end”, commented Stephen Gallo, Strategist at BMO. The expert also highlighted the 80.00 mark as a critical level and “buy on dips barrier”.
As of writing, the index is losing 0.20% at 81.72 with the next support at 81.55, 81.05 and 80.65 while resistance levels are located at 82.10, 82.50 and 83.00.