US Dollar index in highs beyond 80.60

October 15, 2013

Edinburgh-UK (Oct 15)   The greenback, in terms of the US Dollar index, keeps pushing higher on Tuesday, hovering over last week’s peaks around 80.60.

DXY in 3-week highs

The index is advancing for the second consecutive week, reclaiming the ground lost during the sharp sell-off in September. The USD has seen its strength renewed recently, along with increasing hopes of a final solution to the US fiscal gridlock. Jane Foley, Senior Strategist at Rabobank, assessed “We expect that the risk that the Fed will delay any tapering into next year will ensure than any USD relief rally from a temporary resolution to the debt ceiling will be limited this week. We stand ready to revise down our USD forecasts across the board on a 1 to 3 mth view, although this will depend on whether forthcoming US data releases strengthen the view that Fed tapering will be delayed beyond the end of the year”.

DXY levels to watch

The index is now up 0.35% at 80.60 with the next resistance at 80.64 (high Sep.26) followed by 81.35 (high Sep.17) and then 81.93 (high Sep11). On the downside, a violation of 79.63 (low Sep.3) would aim for 79.49 (low Feb.6) and then 78.93 (low Feb.1).

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