6 Sep 2013
US Dollar Index in red around 82.50
FXstreet.com (Edinburgh) -The greenback, gauged by the US Dollar Index, is retracing Thursday’s steep advance ahead of today’s Payrolls, hovering over the mid 82.00s.
DXY focus on data, Fed’s tapering
Pretty decent jobs report and ISM Non-manufacturing above estimates lifted the greenback to multi-week highs yesterday, boosting US yields as well – 10-year Treasuries at 3.0% - and increasing the likeliness of the Fed starting to scale back its monthly bond purchases in the present month. A solid print from August’s NFP would see the greenback gathering steam again and resuming its weekly ascent. “The USD has partly bounced back from July loses, and we expect DXY index gains to continue as the Fed progressively trims its QE program in the coming months. The US recovery has gained sufficient traction and growth should outpace much of the G10. That advantage should underpin policy normalization at the Fed ahead of its developed world peers, driving broad USD gains”, assessed the research team at TD Securities.
DXY relevant levels
As of writing the index is down 0.08%% at 82.55 and a break below 81.10 (low Aug.27) would expose 80.86 (low Aug.8) and finally 80.75 (low Aug.20). On the upside, the first barrier aligns at 83.02 (high Jul.18) followed by 83.45 (high Jul15) and then 84.75 (high Jul.9).
DXY focus on data, Fed’s tapering
Pretty decent jobs report and ISM Non-manufacturing above estimates lifted the greenback to multi-week highs yesterday, boosting US yields as well – 10-year Treasuries at 3.0% - and increasing the likeliness of the Fed starting to scale back its monthly bond purchases in the present month. A solid print from August’s NFP would see the greenback gathering steam again and resuming its weekly ascent. “The USD has partly bounced back from July loses, and we expect DXY index gains to continue as the Fed progressively trims its QE program in the coming months. The US recovery has gained sufficient traction and growth should outpace much of the G10. That advantage should underpin policy normalization at the Fed ahead of its developed world peers, driving broad USD gains”, assessed the research team at TD Securities.
DXY relevant levels
As of writing the index is down 0.08%% at 82.55 and a break below 81.10 (low Aug.27) would expose 80.86 (low Aug.8) and finally 80.75 (low Aug.20). On the upside, the first barrier aligns at 83.02 (high Jul.18) followed by 83.45 (high Jul15) and then 84.75 (high Jul.9).