18 Nov 2013
US Dollar Index weakens below 81.00
FXstreet.com (Edinburgh) - The greenback, gauged by the US Dollar index, is now extending its downside to the area of 80.75/70 so far, as risk appetite continues to sharpen.
DXY still suffering Yellen’s dovish stance
The greenback intensifies the correction lower from last week’s peaks around 81.50, after Fed’s Chair-in-waiting Janet Yellen emphasized the continuation of the accommodative monetary policy in her testimony before the Senate Banking Committee. “The market has already marked Yellen down as a dove and these comments strongly suggest that she will be on no rush to remove the comfort blanket of ample cheap liquidity that sentiment has come to rely on… On a medium-term view, however, the promise of another dovish governor at the Fed suggests that USD bulls may have to remain patient for another couple of months”.
DXY levels to watch
The index is now losing 0.11% at 80.75 and a breach of 80.38 (low Nov.6) would expose 80.00 (psychological level) and finally 79.31 (low Oct.25). On the upside, the initial resistance aligns at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5).
DXY still suffering Yellen’s dovish stance
The greenback intensifies the correction lower from last week’s peaks around 81.50, after Fed’s Chair-in-waiting Janet Yellen emphasized the continuation of the accommodative monetary policy in her testimony before the Senate Banking Committee. “The market has already marked Yellen down as a dove and these comments strongly suggest that she will be on no rush to remove the comfort blanket of ample cheap liquidity that sentiment has come to rely on… On a medium-term view, however, the promise of another dovish governor at the Fed suggests that USD bulls may have to remain patient for another couple of months”.
DXY levels to watch
The index is now losing 0.11% at 80.75 and a breach of 80.38 (low Nov.6) would expose 80.00 (psychological level) and finally 79.31 (low Oct.25). On the upside, the initial resistance aligns at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5).