DXY carving a base around 93.50/94.50 – Westpac

FXStreet (Edinburgh) – According to strategists at Westpac, the US Dollar Index (DXY) could have found a solid base in the 93.50/94.50 band.

Key Quotes

“The USD may not be trading with a great tone but the milieu looks more supportive each passing day”.

“The cadence of the US data should continue to improve as signalled by the formal trough (at least according to our modelling work) in our US surprise index”.

“Room still exists for a Fed “September lift-off fuelled USD rally” with Sep tightening odds (around 40%) seemingly too low in light of comments from reasonable and centrist voters like Powell and Williams in favour of Sep hikes”.

“Bullish confirmation in May has largely been reversed in June though momentum signals suggest a base is being built in the 93.50/94.50 region”.

According to strategists at Westpac, the US Dollar Index (DXY) could have found a solid base in the 93.50/94.50 band…

(Market News Provided by FXstreet)