US Dollar Index dips to 82.60

EDINBURGH-UK (July 19) A bout of weakness around the greenback is dragging the US Dollar Index to another test of the 82.60 region, in terms of the US Dollar Index.

DXY under pressure

Comments from the PBoC regarding it will intervene in the lending rate triggered a negative reaction in the USD, intensifying its downside. Strategist Stephen Gallo at BMO assessed, “All things considered, it’s rather frustrating to see the USD appear (so far) set to end the week slightly below its starting levels, but importantly, this confirms that FX markets remain at the mercy of the bond markets and yields – and as far as the latter two groups are concerned, Bernanke was a dove this week”.

DXY key levels

At the moment the index is down 0.38% at 82.51 facing the next support at 82.45 followed by 82.20 and then 82.00. On the flip side, a breakout of 83.20 would expose 83.45 and finally 83.70.