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US Dollar tumbles to session lows ahead of FOMC

  • DXY drops further despite U-Mich index surprised to the upside.
  • US 10-year yields navigating session lows around 2.34%.
  • FOMC minutes next on tap.

Tracked by the US Dollar Index (DXY), the greenback keeps shedding ground on Wednesday and is now testing the area of fresh daily lows in the 93.55/50 band.

US Dollar offered ahead of FOMC

The selling pressure around the buck accelerated in the European evening despite the final print of US consumer sentiment came in a tad higher than expectations at 98.5 for the current month.

Further data also saw consumer expectations and current conditions coming in above initial estimates.

However, the selling mood keep hurting US yields and thus forcing DXY to trade in the lower end of the weekly range in the vicinity of 93.50. In fact, yields of the US 10-year note have broken below 2.34%, recording at the same time fresh daily lows.

Looking ahead, the greenback should remain under pressure in light of the release of the FOMC minutes.

US Dollar relevant levels

As of writing the index is retreating 0.1345 at 93.55 and a breakdown of 93.45 (55-day sma) would pave the way for a visit to 93.40 (low Nov.15) and finally 92.75 (low Oct.13). On the other hand, the initial hurdle lines up at 94.05 (10-day sma) seconded by 94.16 (low Nov.11) and then 94.37 (21-day sma).

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