Forex: US Dollar Index consolidates below 80.00

FXstreet.com (Barcelona) -The US Dollar Index, which gauges the greenback against its major rivals, is intensifying its way south on Monday, unable to gather any traction as risk appetite dominates the markets.

In the data front, the manufacturing PMI rose to 52.8 during November, while the more relevant ISM fell to sub 50 levels, printing 49.7 during the same period, down from October’s 51.7. Ahead in the week, the USD would face further pressure, as the BoE and the ECB will hold their meetings, along with the NFP due on Friday.

M.Mohi-uddin, Managing Director of Foreign Exchange Strategy at UBS, commented “Aside from US data, investors are likely to keep following Washington's fiscal discussions. UBS's Public Policy Office in DC expects no deal will be done until the last moment. That means renewed bouts of risk-aversion are likely in the next thirty days until the gridlock is broken by closed-door negotiations between the Democrats and the Republicans”.

At the moment the index is down 0.42% at 79.85 and according to tradingcentral.com, the immediate support lies at 79.80 followed by 79.70 and then 79.47
On the upside, resistance levels are located at 80.25 ahead of 80.45 and then 80.60

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