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19 Jun 2013
US Dollar Index turns red around 80.70
FXstreet.com (Edinburgh) - The US Dollar index, which gauges the greenback against its major rivals, is now trading on the back foot, posting marginal losses around 80.70 ahead of the Fed meeting.
Much has been said about the likeliness of the Fed scaling back its monthly purchases of assets, but Jane Foley, Strategist at Rabobank, comments on the opposite side: “On the assumption that the Fed leaves QE ‘untapered’ today, risk appetite is likely to find a support. However, now that the market knows that the Fed is planning a withdrawal at some point in the months ahead, it would seem unlikely that confidence will return to the exuberance that was witnessed in the first 5 ½ months of this year”.
At the moment the index is down 0.04% at 80.71 with the next support at 80.50, 80.20 and 80.00. Resistance levels align at 81.00, 81.30 and 81.60.
Much has been said about the likeliness of the Fed scaling back its monthly purchases of assets, but Jane Foley, Strategist at Rabobank, comments on the opposite side: “On the assumption that the Fed leaves QE ‘untapered’ today, risk appetite is likely to find a support. However, now that the market knows that the Fed is planning a withdrawal at some point in the months ahead, it would seem unlikely that confidence will return to the exuberance that was witnessed in the first 5 ½ months of this year”.
At the moment the index is down 0.04% at 80.71 with the next support at 80.50, 80.20 and 80.00. Resistance levels align at 81.00, 81.30 and 81.60.