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5 Aug 2013
US Dollar Index retreats below 82.00
FXstreet.com (Edinburgh) -The greenback, gauged by the US Dollar Index, is prolonging last Friday’s losses below the key support at 82.00, as risk appetite has taken over sentiment.
DXY remains on the back foot
The USD has retraced almost all the gains made last Thursday after the BoE and ECB monetary policy meetings, with market participants still digesting the lacklustre result from July’s US Payrolls. Stephen Gallo, Strategist at BMO, assessed, “On the basis of our 2H 2013 outlook for the USD, this continues to leave room for opportunities to buy the USD on dips as the Fed is still, in our opinion, left with the task of picking an initial size for QE tapering that matches the extent of the adjustment in US rates thus far, leaving open the possibility that some FX market participants are mistakenly beginning to view the risks that the Fed does not taper in 2013 as quite high”.
DXY relevant levels
The index is now losing 0.02% at 81.91 with the next support at 81.75 followed by 81.60 and then 81.40. On the flip side, a breakout of 82.25 would expose 82.50 and then 82.80.
DXY remains on the back foot
The USD has retraced almost all the gains made last Thursday after the BoE and ECB monetary policy meetings, with market participants still digesting the lacklustre result from July’s US Payrolls. Stephen Gallo, Strategist at BMO, assessed, “On the basis of our 2H 2013 outlook for the USD, this continues to leave room for opportunities to buy the USD on dips as the Fed is still, in our opinion, left with the task of picking an initial size for QE tapering that matches the extent of the adjustment in US rates thus far, leaving open the possibility that some FX market participants are mistakenly beginning to view the risks that the Fed does not taper in 2013 as quite high”.
DXY relevant levels
The index is now losing 0.02% at 81.91 with the next support at 81.75 followed by 81.60 and then 81.40. On the flip side, a breakout of 82.25 would expose 82.50 and then 82.80.