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9 Sep 2013
US Dollar challenging 82.00
FXstreet.com (Edinburgh) -The selling interest around the greenback is gathering steam on Monday, dragging the US Dollar index to put the key support at 82.00 to the test.
DXY extends the downside
The USD is now prolonging its pronounced decline from last Friday, sparked after US Payrolls disappointed investors adding 169k jobs during August against expectations for a gain of 180K. In the opinion of Senior Strategist Jane Foley at Rabobank, “We remain of the view that the Fed will probably dip its toe in the tapering pond by announcing a USD10 bln reduction in the amount of its monthly asset purchases at the September 17-18 FOMC. We also maintain that as the US economy strengthens and the Fed gets its teeth into tapering that the USD will strengthen. That said, the lack of vigour in the US labour market suggests that this scenario may still be some months away”.
DXY key levels
At the moment the index is losing 0.17% at 81.98 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 extends the downside
The USD is now prolonging its pronounced decline from last Friday, sparked after US Payrolls disappointed investors adding 169k jobs during August against expectations for a gain of 180K. In the opinion of Senior Strategist Jane Foley at Rabobank, “We remain of the view that the Fed will probably dip its toe in the tapering pond by announcing a USD10 bln reduction in the amount of its monthly asset purchases at the September 17-18 FOMC. We also maintain that as the US economy strengthens and the Fed gets its teeth into tapering that the USD will strengthen. That said, the lack of vigour in the US labour market suggests that this scenario may still be some months away”.
DXY key levels
At the moment the index is losing 0.17% at 81.98 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).