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US Dollar Index cheerful around 81.80

FXstreet.com (Edinburgh) -The greenback, tracked by the US Dollar Index, is now cashing up some earlier gains, easing ground after peaking near 81.90 post-US data.

DXY extends the ascent

The USD rally remains intact so far, bolstered by decent results from the US retailers during July and the small improvement in the business optimism gauged by NFIB in the same period. “Going forward we do expect that the factors for a USD recovery are mounting. By year end the Fed is likely to have started to taper the size of its monthly asset purchases. This will be coincident with more convincing signs of strength in the US economy… Overall 2014 is likely to be a better year for the USD”, signalled Jane Foley, Strategist at Rabobank.

DXY key levels

The index is now advancing 0.79% at 81.77 and a break above 82.50 (high Aug.2) would expose 83.12 (high Jul.15) and then 84.75 (high Jul.9). On the flip side, support levels align at 80.86 (low Aug.8) followed by 80.50 (low Jun.19) and then 80.27 (low Feb.20).

The USD/JPY's rally knocks into the 98.25 resistance

After rallying around 100 pips since the 97.15 reached in the Asian overnight session, the USD/JPY jumped to trade above the 89.00 area but it was rejected by the 98.25 resistance.
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GBP/USD settles below 1.5500

Following a short-lived spike, the GBP/USD slipped back below the 1.5500 mark and settled within a narrow range.
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