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19 Jun 2013
US Dollar Index flat around 80.80
FXstreet.com (Edinburgh) - The greenback, in terms of the US Dollar index, is posting meagre gains on Wednesday, following the lack of direction in the markets ahead of the FOMC statement due this evening.
In light of the main event for the USD this week, that is the FOMC meeting and press conference by Chief Bernanke, Strategist Stephen Gallo at BMO commented, “Once tapering begins, the marginal decrease in the level of asset purchases will probably depend on how the data develop. Before tapering begins however, the focus on the part of the Fed may be to limit the most obvious negative externality of QE, which have been the distortions caused in asset prices… If so, the high-yield space remains modestly vulnerable versus the USD – but just modestly”.
At the moment the index is up 0.05% at 80.79 facing the next hurdle at 81.00, 81.30 and 81.60 while support levels line up at 80.50, 80.20 and 80.00.
In light of the main event for the USD this week, that is the FOMC meeting and press conference by Chief Bernanke, Strategist Stephen Gallo at BMO commented, “Once tapering begins, the marginal decrease in the level of asset purchases will probably depend on how the data develop. Before tapering begins however, the focus on the part of the Fed may be to limit the most obvious negative externality of QE, which have been the distortions caused in asset prices… If so, the high-yield space remains modestly vulnerable versus the USD – but just modestly”.
At the moment the index is up 0.05% at 80.79 facing the next hurdle at 81.00, 81.30 and 81.60 while support levels line up at 80.50, 80.20 and 80.00.