DXY recovering near 96.70

FXStreet (Edinburgh) - The US Dollar Index, which gauges the greenback vs. its main rivals, is now posting marginal gains around the 96.60 area.

DXY gains limited at 96.80

The greenback continues to digest the miserable results from March Payrolls (126K act. vs. 244K exp.) managing to keep the trade around the mid-96.00s so far, although the upside remains limited in the 96.80 area.

With most of the markets closed due to the Easter Monday holiday, traders will look to the US docket for the very near term price action of the greenback, as Labor Market Conditions Index and the ISM Non manufacturing will take centre stage later.

DXY levels to consider

The index is now up 0.13% at 96.67 and a break above 96.80 (high Apr.6) would open the door to 98.64 (high Apr.1) and then 99.11 (high Mar.20). On the downside, the initial support aligns at 96.48 (low Apr.6) ahead of 96.17 (low Mar.26) and finally 95.84 (low Mar.5).

Weak payrolls to pressure USD - TDS

FX Strategists at TD Securities comments on the US jobs data released in the previous week, and further add that markets doubt a probable September hike by the Fed, with the soft payrolls data making USD vulnerable to setbacks.
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