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4 Nov 2013
DXY enters week just below ST ceiling at 80.75. Will tapering talk withstand jobs report?
FXstreet.com (Barcelona) - The US Dollar Index (DXY) was boosted last week by the persistent chatter regarding the Fed’s QE-tapering program commencing sometime in December or January instead of later on in 2014. Will the economic date – headlined by the US jobs report on Friday – be good enough to keep the chatter coming?
DXY to be pushed around by data and central bankers all week
While the evidence thus far has been anything but unanimous in support of one side or the other in the tapering debate, there’s always the next set of data points to consider. This week, that next set will include BOJ Governor Kuroda speaking on Tuesday, the BOJ’s meeting minutes release on Thursday, the ECB’s interest rate decision and commentary on Thursday, the US GDP and weekly jobless claims on Thursday and the US monthly jobs report on Friday.
Technical outlook for the DXY
Technicians say the DXY bumped right into horizontal line resistance (from the 10/21/13 peak) last week at 80.75. They note that the way the DXY is trading is indicative of a breakout yet to occur. The next resistance is the 9/16 close (and lower edge of downside gap) at 81.29. Support comes in at the first two meaningful Fibonacci retracements of the recent rally at 80.11 and 79.90.
DXY to be pushed around by data and central bankers all week
While the evidence thus far has been anything but unanimous in support of one side or the other in the tapering debate, there’s always the next set of data points to consider. This week, that next set will include BOJ Governor Kuroda speaking on Tuesday, the BOJ’s meeting minutes release on Thursday, the ECB’s interest rate decision and commentary on Thursday, the US GDP and weekly jobless claims on Thursday and the US monthly jobs report on Friday.
Technical outlook for the DXY
Technicians say the DXY bumped right into horizontal line resistance (from the 10/21/13 peak) last week at 80.75. They note that the way the DXY is trading is indicative of a breakout yet to occur. The next resistance is the 9/16 close (and lower edge of downside gap) at 81.29. Support comes in at the first two meaningful Fibonacci retracements of the recent rally at 80.11 and 79.90.