8 Nov 2013
US Dollar index buoyant above 81.00
FXstreet.com (Edinburgh) -The greenback, in terms of the US Dollar index, is trading in the upper band of today’s range, consolidating recent gains through the 81.00 handle.
DXY boosted by Payrolls
Unexpected results from October’s Non-farm Payrolls, exceeding even the most optimistic forecasts at 204K gave extra oxygen to the USD, taking the index to test yesterday’s post-ECB spike near 81.50. Philip Marey, Senior US Strategist at Rabobank, assessed, “While the chance of a December taper has increased, we don’t believe the Fed is in a hurry, because of several reasons. Although employment growth is back in the Fed’s comfort zone, and unemployment may fall again in November when all government employees are counted as employed again, wider unemployment measures are still weak… Therefore we stick to our call of a first taper in March”.
DXY levels to watch
The index is now up 0.58% at 81.29 with the initial resistance at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5) . On the downside, a breach of 79.31 (low Oct.25) would open the door to 79.13 (low Oct.23) and then 78.93 (low Feb.1).
DXY boosted by Payrolls
Unexpected results from October’s Non-farm Payrolls, exceeding even the most optimistic forecasts at 204K gave extra oxygen to the USD, taking the index to test yesterday’s post-ECB spike near 81.50. Philip Marey, Senior US Strategist at Rabobank, assessed, “While the chance of a December taper has increased, we don’t believe the Fed is in a hurry, because of several reasons. Although employment growth is back in the Fed’s comfort zone, and unemployment may fall again in November when all government employees are counted as employed again, wider unemployment measures are still weak… Therefore we stick to our call of a first taper in March”.
DXY levels to watch
The index is now up 0.58% at 81.29 with the initial resistance at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5) . On the downside, a breach of 79.31 (low Oct.25) would open the door to 79.13 (low Oct.23) and then 78.93 (low Feb.1).