US Dollar off highs, slips back below 95.00

The US Dollar Index, which tracks the buck vs. its main rivals, is recovering part of yesterday’s deep pullback to the vicinity of the 94.30 region.

US Dollar attention to FOMC

The index is following the generalized lack of a clear direction in the global markets, albeit trading with decent gains after Tuesday’s drop to new 2-month lows.

Recent comments by New York Fed W.Dudley have lent support to the greenback, after he argued that a rate hike by the Federal Reserve at the September meeting is ‘possible’, also adding that the Fed Fund Futures markets are underpricing rate hikes.

However, USD will remain under pressure despite today’s upbeat tone, as the FOMC minutes are expected to come in on the dovish side, reinforcing the ongoing cautious stance from the Committee.

US Dollar relevant levels

The index is gaining 0.11% at 94.90 and a breakout of 95.62 (55-day sma) would open the door to 96.50 (high Aug.5) and finally 97.05 (78.6% Fibo of July-August drop). On the flip side, the next support emerges at 94.31 (up trend off 2016 low at 91.88) followed by 93.03 (low Jun.23) and then 91.88 (2016 low May 3).