10 Oct 2013
US Dollar index losing the grip
FXstreet.com (Edinburgh) -The greenback, gauged by the US Dollar Index, is surrendering initial gains and prolonging the correction from today’s tops to the current 80.40/45 region.
DXY focus on US docket
The index is now meandering around the lower band of today’s range below 80.40, as some profit talking in the USD and better tone from the risk appetite is prevailing amongst investors. Ahead in the day, the weekly report on the US market labour will be the most relevant release followed by speeches by Bullard and Williams. Against the backdrop of the US federal shutdown and the debt ceiling, analysts at TD Securities commented, “Market sentiment is a little more constructive on the potential for US politicians to agree, for the moment, that default is not a good thing for anyone and strike a deal. Given that a comprehensive bargain on spending and the debt ceiling seems unlikely at this point and that we will be back to square one in the next few weeks, risk assets may not take too much comfort from the deal”.
DXY key levels
The index is now advancing 0.06% at 80.41 with the next resistance at 80.64 (high Sep.26) followed by 81.35 (high Sep.17) and then 81.93 (high Sep11). On the flip side, a breakdown of 79.49 (low Feb.6) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012).
DXY focus on US docket
The index is now meandering around the lower band of today’s range below 80.40, as some profit talking in the USD and better tone from the risk appetite is prevailing amongst investors. Ahead in the day, the weekly report on the US market labour will be the most relevant release followed by speeches by Bullard and Williams. Against the backdrop of the US federal shutdown and the debt ceiling, analysts at TD Securities commented, “Market sentiment is a little more constructive on the potential for US politicians to agree, for the moment, that default is not a good thing for anyone and strike a deal. Given that a comprehensive bargain on spending and the debt ceiling seems unlikely at this point and that we will be back to square one in the next few weeks, risk assets may not take too much comfort from the deal”.
DXY key levels
The index is now advancing 0.06% at 80.41 with the next resistance at 80.64 (high Sep.26) followed by 81.35 (high Sep.17) and then 81.93 (high Sep11). On the flip side, a breakdown of 79.49 (low Feb.6) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012).