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Forex: US Dollar Index up, eyes on 83.00


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The greenback, measures by the US Dollar Index, is retracing early gains after climbing as high as 82.91 as the crisis in Spain is weighting on sentiment.

The dollar has recovered ground lost after the European Commission announced that the ESM could be used to recapitalize ailing banks, boosting the risk trends, although it later proved to be ephemeral.

 

All in all, same story as of late for the world’s reserve, as the euro zone crisis remains centre stage against a backdrop of rising borrowing costs in Spanish and Italian debt markets, banking system in Spain desperately waiting for any life-saver and pre-election poll results in Greece playing with traders’ mood.

 

At the moment: AUD -0.97%, EUR -0.49%, GBP -0.60%, NZD -0.62%, CAD +0.63% CHF +0.49% and JPY -0.70%. Wall St. is retreating 1.10% at 12,433 pts and S&P500 is down 1.16% at 1,314 pts. WTI is losing 2.69% at $88.28/bbl and Gold is down 0.88% at $1,540/oz

 

The index is advancing 0.49% at 82.89 as of writing, with the next resistance at 83.02, ahead of 83.33 and 83.67

On the flip side, support levels lie at 82.17 followed by 81.86 and then 81.59

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