Back
16 Jul 2013
US Dollar Index drops to lows
FXstreet.com (Barcelona) - Heavy selling continues to weight on the greenback, dragging it to session lows around 82.55/50 in terms of the US Dollar index.
DXY vs. Bernanke II
Last week’s speech by Chairman Bernanke resulted in a sharp sell-off in the USD and the tone would likely be the same in tomorrow’s Semi-annual Congressional Testimony at Capitol Hill. Market consensus expects Bernanke to emphasize once again the differences between ‘tapering’ and ‘tightening’, leaving the buck exposed to further downside. “Expectations that Fed Chmn. Bernanke’s comments in front of Congress later this week will lean dovish are pressuring the USD—though, in essence, we expect a repeat of what policy makers have been suggesting for a while now—tapering is likely to start later this year but that interest rate increases (i.e. a tightening in monetary policy) is a long way off still”, noted the research team at TD Securities.
DXY key levels
The index is now losing 0.56% at 82.60 with the next support at 82.50 followed by 82.20. On the flip side, a break above 83.65 would bring 83.90 and then 84.10.
DXY vs. Bernanke II
Last week’s speech by Chairman Bernanke resulted in a sharp sell-off in the USD and the tone would likely be the same in tomorrow’s Semi-annual Congressional Testimony at Capitol Hill. Market consensus expects Bernanke to emphasize once again the differences between ‘tapering’ and ‘tightening’, leaving the buck exposed to further downside. “Expectations that Fed Chmn. Bernanke’s comments in front of Congress later this week will lean dovish are pressuring the USD—though, in essence, we expect a repeat of what policy makers have been suggesting for a while now—tapering is likely to start later this year but that interest rate increases (i.e. a tightening in monetary policy) is a long way off still”, noted the research team at TD Securities.
DXY key levels
The index is now losing 0.56% at 82.60 with the next support at 82.50 followed by 82.20. On the flip side, a break above 83.65 would bring 83.90 and then 84.10.