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19 Aug 2013
US Dollar Index in red above 81.00
FXstreet.com (Edinburgh) -The world’s reserve, gauged by the US Dollar Index, is revering last Friday’s bull attempt, posting marginal losses in the area of 81.20/25.
DXY eyes on FOMC, Jackson Hole
The USD will be in the limelight in the upcoming sessions, as the FOMC minutes are due on Wednesday followed by the Jackson Hole Symposium. Consensus points to a bearish tone from the minutes, although the Fed’s tapering would be the main focus in Jackson Hole – despite the absence of prominent central bankers - all amidst a context of rising yields in the US. “The timing of Fed QE tapering remains a key driver of the currency market and this week should bring more information… Our main scenario remains for an announcement in September but even though this should be dollar positive, we doubt that this alone will be enough to drive a meaningful dollar appreciation”.
DXY levels to watch
At the moment the index is down 0.06% at 81.24 facing the next support at 81.05 (low Aug.16) followed by 80.86 (low Aug.8) and then 80.50 (low Jun.19). On the upside, a surpass of 81.94 (high Aug.15) would bring of 82.50 (high Aug.2) and then 83.12 (high Jul.15).
DXY eyes on FOMC, Jackson Hole
The USD will be in the limelight in the upcoming sessions, as the FOMC minutes are due on Wednesday followed by the Jackson Hole Symposium. Consensus points to a bearish tone from the minutes, although the Fed’s tapering would be the main focus in Jackson Hole – despite the absence of prominent central bankers - all amidst a context of rising yields in the US. “The timing of Fed QE tapering remains a key driver of the currency market and this week should bring more information… Our main scenario remains for an announcement in September but even though this should be dollar positive, we doubt that this alone will be enough to drive a meaningful dollar appreciation”.
DXY levels to watch
At the moment the index is down 0.06% at 81.24 facing the next support at 81.05 (low Aug.16) followed by 80.86 (low Aug.8) and then 80.50 (low Jun.19). On the upside, a surpass of 81.94 (high Aug.15) would bring of 82.50 (high Aug.2) and then 83.12 (high Jul.15).