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5 Jul 2013
US Dollar index retreats from highs
FXstreet.com (Edinburgh) - The US Dollar Index, which tracks the greenback against its major competitors, is easing from fresh year highs above 84.50 on Friday, bolstered by solid NFP figures.
DXY better prospects for H2 2013
The USD is thus recovering the ground lost in the recent mid-May-mid-June sell off, back to test 2013 highs above 84.50, and giving extra fuel to the Fed’s ‘tapering’ chatter at the same time. However, Senior Strategist Jane Foley at Rabobank, casted a mantle of doubt on the sustainability of the USD strength, commenting, “Given that the success of the forward guidance adopted by both the BoE and the ECB this week and in view of the market’s fears of QE tapering by the Fed, EUR/USD and GBP/USD are likely to remain pressured near term. That said, given the risk that Fed doves may push back against tapering fears there is likely to be plenty of room for taking profits on USD longs this summer”.
DXY relevant levels
At the moment the index is advancing 0.80% at 84.42 with the next hurdle at 84.70. Support levels line up at 83.50, 83.20 and 82.95.
DXY better prospects for H2 2013
The USD is thus recovering the ground lost in the recent mid-May-mid-June sell off, back to test 2013 highs above 84.50, and giving extra fuel to the Fed’s ‘tapering’ chatter at the same time. However, Senior Strategist Jane Foley at Rabobank, casted a mantle of doubt on the sustainability of the USD strength, commenting, “Given that the success of the forward guidance adopted by both the BoE and the ECB this week and in view of the market’s fears of QE tapering by the Fed, EUR/USD and GBP/USD are likely to remain pressured near term. That said, given the risk that Fed doves may push back against tapering fears there is likely to be plenty of room for taking profits on USD longs this summer”.
DXY relevant levels
At the moment the index is advancing 0.80% at 84.42 with the next hurdle at 84.70. Support levels line up at 83.50, 83.20 and 82.95.