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18 Mar 2015
DXY slumps to 98.50
FXStreet (Edinburgh) - The US Dollar Index, which tracks the greenback vs. its main competitors, is now rapidly intensifying the downside, testing the mid-98.00s.
DXY hurt by FOMC
The US dollar saw its selling pressure accelerated following the FOMC gathering today. The Committee somewhat disappointed markets, as the prior surveys were pointing to a hawkish tone from the statement, relegating the index to sub-99.00 levels.
The Committee dropped the ‘patient’ stance regarding the interest rate guidance, arguing that it now needs to be ‘reasonably confident’ on inflation returning to the target in order to raise rates (probably June or later). It also said that a rate lift-off in April is unlikely. In further appreciations, the FOMC said the job gains remain strong and that labour market conditions have improved further, whereas export growth has lost momentum.
DXY levels to consider
The index is now losing 1.44% at 98.60 and a break below 97.91 (low Mar.9) would target 96.89 (low Mar.6) en route to 96.58 (low Mar.5). On the upside, the initial barrier lines up at 100.26 (high Mar.17) ahead of 100.78 (high Mar.13) followed by 101.00 (psychological level).
DXY hurt by FOMC
The US dollar saw its selling pressure accelerated following the FOMC gathering today. The Committee somewhat disappointed markets, as the prior surveys were pointing to a hawkish tone from the statement, relegating the index to sub-99.00 levels.
The Committee dropped the ‘patient’ stance regarding the interest rate guidance, arguing that it now needs to be ‘reasonably confident’ on inflation returning to the target in order to raise rates (probably June or later). It also said that a rate lift-off in April is unlikely. In further appreciations, the FOMC said the job gains remain strong and that labour market conditions have improved further, whereas export growth has lost momentum.
DXY levels to consider
The index is now losing 1.44% at 98.60 and a break below 97.91 (low Mar.9) would target 96.89 (low Mar.6) en route to 96.58 (low Mar.5). On the upside, the initial barrier lines up at 100.26 (high Mar.17) ahead of 100.78 (high Mar.13) followed by 101.00 (psychological level).