US Dollar drops and rebounds from 95.10 ahead of FOMC
- The decline in the index finds some respite near 95.10.
- US 10-year yields dropped to lows near the 2.81% handle.
- FOMC minutes next of relevance seconded by Pending Home Sales.
The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main competitors, is looking to extend the daily recovery after bottoming out in the 95.10 region early in the session.
US Dollar looks to FOMC, Trump
The buck suffered another blow after President Trump got involved in an accusation of conspiracy to influence an election following declarations of Trump’s former chair campaign P.Manafort and his personal lawyer M.Cohen on Tuesday.
The index tumbled further following this news, briefly hovering over the key support at 95.00 the figure, or multi-day lows, although managing to gather some buying interest soon afterwards.
In the meantime, the buck remains in centre stage amidst the unabated US-China trade effervescence and renewed US political concerns with President Trump once again in the limelight.
Looking ahead, market participants will look for any hint of two more rate hikes at today’s FOMC minutes, while Existing Home Sales are expected to have expanded 0.6% MoM during July.
US Dollar relevant levels
As of writing the index is up 0.02% at 95.27 facing the next support at 95.08 (low Aug.21) seconded by 94.99 (low Aug.8) and finally 94.89 (55-day SMA). On the other hand, a break above 95.43 (21-day SMA) would aim for 96.08 (10-day SMA) and then 96.98 (2018 high Aug.15).