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19 Sep 2013
US Dollar Index bounces off 80.00
FXstreet.com (Edinburgh) -The bearishness continues to put the greenback under pressure on Thursday, dragging the US Dollar index to fresh multi-week lows around the 80.00 handle.
DXY hurt by Fed inaction
The vast majority of the FX community was not ready for the dovish tone that both the FOMC statement and the subsequent press conference by Chairman Bernanke exhibited on Wednesday, sending the DXY to test the psychological support at 80.00. “We see the Fed’s stance as bullish for equities in general, but mainly for developed markets over emerging markets, particularly as structural issues remain in the latter that show no signs of going away. We remain bullish on US equities above all and see weakness in the dollar as a buying opportunity. Improvements in fiscal and trade positions continue and the Fed will eventually start tapering at some point”, observed Dominic Rossi, Head of Global CIO of Equities at Fidelity Worldwide Investment.
DXY levels to watch
At the moment the index is losing 0.03% at 80.13 and a break below 79.49 (low Feb.6) would expose 78.93 (low Feb.1). On the upside, the initial barrier aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).
DXY hurt by Fed inaction
The vast majority of the FX community was not ready for the dovish tone that both the FOMC statement and the subsequent press conference by Chairman Bernanke exhibited on Wednesday, sending the DXY to test the psychological support at 80.00. “We see the Fed’s stance as bullish for equities in general, but mainly for developed markets over emerging markets, particularly as structural issues remain in the latter that show no signs of going away. We remain bullish on US equities above all and see weakness in the dollar as a buying opportunity. Improvements in fiscal and trade positions continue and the Fed will eventually start tapering at some point”, observed Dominic Rossi, Head of Global CIO of Equities at Fidelity Worldwide Investment.
DXY levels to watch
At the moment the index is losing 0.03% at 80.13 and a break below 79.49 (low Feb.6) would expose 78.93 (low Feb.1). On the upside, the initial barrier aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).