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2 Oct 2013
US Dollar keeps the bounce, eyes on 80.00
FXstreet.com (Edinburgh) -After bottoming out below 79.80, the US Dollar index, which gauges the greenback against its main competitors, commenced a recovery to the current boundaries of 80.00.
DXY subdued by US shutdown
The offered tone continues to weigh on the demand for the safe haven, amidst the ongoing uncertainties hovering over the administrative paralysis in the US Government which is expected to finish at some point before the weekend. Analysts at TD Securities assessed that “With no quick-fix to the Washington stand-off in sight, investors may start to ponder the risk of a longer shutdown—a week or more—which would roll the confrontation closer to the debt ceiling deadline on October 17th… But investors still have little to choose between political uncertainty in Europe and the US so EUR/USD (and the USD more broadly) may remain range bound for a little longer”.
DXY levels to watch
The index is now losing 0.27% at 79.94 and a break below 79.49 (low Feb.6) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, the first hurdle aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).
DXY subdued by US shutdown
The offered tone continues to weigh on the demand for the safe haven, amidst the ongoing uncertainties hovering over the administrative paralysis in the US Government which is expected to finish at some point before the weekend. Analysts at TD Securities assessed that “With no quick-fix to the Washington stand-off in sight, investors may start to ponder the risk of a longer shutdown—a week or more—which would roll the confrontation closer to the debt ceiling deadline on October 17th… But investors still have little to choose between political uncertainty in Europe and the US so EUR/USD (and the USD more broadly) may remain range bound for a little longer”.
DXY levels to watch
The index is now losing 0.27% at 79.94 and a break below 79.49 (low Feb.6) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012). On the upside, the first hurdle aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).