90.000 could well be unsustainable for the index short-term, but the Greenback has retested some psychological levels vs the Yen and Gold for example, around 109.00 and Usd 1900/oz respectively, as it attempts to stabilise again from todays session.
The latest recovery began with a bounce from 89.584 vs yesterday’s 89.533 base and continued after an early dovish salvo from ECB’s Panetta that thwarted the Euro’s latest effort to clear the 1.2250 mark convincingly.
In terms of US specifics, no taper talk or inflation boost for the Buck in the same vein as last Wednesday or the one before that, but Treasury yields offered a degree of underlying support, relatively speaking, ahead of Usd 26 bn 2 year FRN and USD 61 bn 5 year note supply. This could put pressure on the index for the remainder of the week. And I cant see it holding for long.
Back to the DXY, 90.023 has been printed thus far compared to Tuesday’s 89.867, and a ‘close’ above would be encouraging, for many traders looking at the majors near the highs.
The latest recovery began with a bounce from 89.584 vs yesterday’s 89.533 base and continued after an early dovish salvo from ECB’s Panetta that thwarted the Euro’s latest effort to clear the 1.2250 mark convincingly.
In terms of US specifics, no taper talk or inflation boost for the Buck in the same vein as last Wednesday or the one before that, but Treasury yields offered a degree of underlying support, relatively speaking, ahead of Usd 26 bn 2 year FRN and USD 61 bn 5 year note supply. This could put pressure on the index for the remainder of the week. And I cant see it holding for long.
Back to the DXY, 90.023 has been printed thus far compared to Tuesday’s 89.867, and a ‘close’ above would be encouraging, for many traders looking at the majors near the highs.