DXY index trading at 82.75 lvels - ICICI Bank : Treasury Research

The DXY index is trading at 82.75 levels after losing 1.55% in yesterday's trading session as Bernanke's comments and FOMC June policy minutes signalled that the low inflation and weak labour market situation might lead the Fed to maintain an accommodative policy stance in the coming months, thereby resulting in paring of Fed QE tapering expectations as early as September.

The index though remains supported and hit an intraday high of 83.25 yesterday, on account of the differential economic prospects and monetary policy stance in the US economy as compared to the other G4 economies. The index though pared gains on weaker than expected jobless claims prints and data showing decline in export and import prices for the 4th consecutive month.

The greenback has also come under pressure on Chinese Finance Minister Lou Jiwei's comments that "sustained U.S. growth supports QE exit, but jobless rate suggests it is too early" The markets would now watch for the US consumer confidence data due for release later today. Technically, intraday trend for the DXY is bearish with support and resistance at 82.37 and 83.65 respectively.

Source : Equity Bulls

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