8 Aug 2013
US Dollar index approaches 81.00
FXstreet.com (Edinburgh) -The greenback, tracked by the US Dollar Index, is prolonging its horrible week, trading just above the key support at 81.00 on Thursday.
DXY hurt by Chinese data
Positive data from the Chinese trade balance overnight - with improvement in both exports and imports - continue to prop up the risk appetite, dragging the index to its fifth consecutive session in red, around levels last seen in late June. Stephen Gallo, Strategist at BMO, assessed “If the Fed can find a way to give US rates and the USD a little nudge higher without completely undoing its well understood intentions to keep rates low even after QE withdrawal begins, about now would appear to be the right time to execute. Anchoring for low rates outside of the US should have been successful enough to, for now, allow US rates to outperform their European and other G10 counterparts during periodic fixed income market sell offs”.
DXY key levels
The index is now losing 0.10% at 81.18 with the next support at 80.50 (low Jun.19) followed by 80.27 (low Feb.20) and finally 79.84 (low Feb.19). On the flip side, a break above 82.50 (high Aug.2) would expose 83.12 (high Jul.15) and then 84.75 (high Jul.9).
DXY hurt by Chinese data
Positive data from the Chinese trade balance overnight - with improvement in both exports and imports - continue to prop up the risk appetite, dragging the index to its fifth consecutive session in red, around levels last seen in late June. Stephen Gallo, Strategist at BMO, assessed “If the Fed can find a way to give US rates and the USD a little nudge higher without completely undoing its well understood intentions to keep rates low even after QE withdrawal begins, about now would appear to be the right time to execute. Anchoring for low rates outside of the US should have been successful enough to, for now, allow US rates to outperform their European and other G10 counterparts during periodic fixed income market sell offs”.
DXY key levels
The index is now losing 0.10% at 81.18 with the next support at 80.50 (low Jun.19) followed by 80.27 (low Feb.20) and finally 79.84 (low Feb.19). On the flip side, a break above 82.50 (high Aug.2) would expose 83.12 (high Jul.15) and then 84.75 (high Jul.9).