Back
1 Oct 2013
US Dollar index testing 80.00
FXstreet.com (Edinburgh) -The greenback, gauged by the US Dollar Index, is grinding lower on Tuesday post-shutdown, challenging the key area around 80.00.
DXY hurt by US shutdown
The index is retreating for the third consecutive session on Tuesday, regaining the 80.00 handle after bottoming out around 8-month lows at 79.85/80. The offered tone has been punishing the world’s reserve throughout September, retracing the sharp advance during the first quarter. Fanning the flames, today’s US Government shutdown threatens to extend further and closer to the more relevant negotiations regarding the debt ceiling, hurting the investors’ confidence at the same time. Jane Foley, Strategist at Rabobank, observed “The bearish implications of a US shutdown, however, would pale into insignificance if the US government were to default on its debt. The cautiously upbeat tone in market this morning implies the market is assuming that not even the extremely polarised US government would allow this to happen. That said, the currently political uncertainty should contain risk appetite until a new debt ceiling is in place”.
DXY key levels
The index is now losing 0.25% at 80.02 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 hurt by US shutdown
The index is retreating for the third consecutive session on Tuesday, regaining the 80.00 handle after bottoming out around 8-month lows at 79.85/80. The offered tone has been punishing the world’s reserve throughout September, retracing the sharp advance during the first quarter. Fanning the flames, today’s US Government shutdown threatens to extend further and closer to the more relevant negotiations regarding the debt ceiling, hurting the investors’ confidence at the same time. Jane Foley, Strategist at Rabobank, observed “The bearish implications of a US shutdown, however, would pale into insignificance if the US government were to default on its debt. The cautiously upbeat tone in market this morning implies the market is assuming that not even the extremely polarised US government would allow this to happen. That said, the currently political uncertainty should contain risk appetite until a new debt ceiling is in place”.
DXY key levels
The index is now losing 0.25% at 80.02 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).