10 Oct 2013
US dollar Index off highs around 80.40
FXstreet.com (Edinburgh) -The US Dollar index, which tracks the world’s reserve against its main competitors, is retreating from earlier highs, hovering over 80.40/35.
DXY focus on the US events
The index is trading in the verge of the negative territory on Thursday amidst positive news from the US, citing that House Republican proposed a six-week increase in the debt ceiling so that the US could avoid its first-ever default. The proposal would extend the debt ceiling to November 22nd. In the meantime, negotiations continue in order to re-open the Government, another condition to meet by politicians that would unlock the start of the budget talks. Philip Marey, Strategist at Rabobank, noted “We look back at the debt ceiling events of 2011 to get an idea what kind of market reaction we can expect before and after the debt ceiling deadline of October 17… Interestingly, they suggest only modest safe have flows before the deadline, as the perceived risk of a default remains low”.
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 the US events
The index is trading in the verge of the negative territory on Thursday amidst positive news from the US, citing that House Republican proposed a six-week increase in the debt ceiling so that the US could avoid its first-ever default. The proposal would extend the debt ceiling to November 22nd. In the meantime, negotiations continue in order to re-open the Government, another condition to meet by politicians that would unlock the start of the budget talks. Philip Marey, Strategist at Rabobank, noted “We look back at the debt ceiling events of 2011 to get an idea what kind of market reaction we can expect before and after the debt ceiling deadline of October 17… Interestingly, they suggest only modest safe have flows before the deadline, as the perceived risk of a default remains low”.
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).