US Dollar looking to regain 99.00

The greenback, in terms of the US Dollar Index, is exchanging gains with losses on Tuesday, looking to retake the key 99.00 barrier.

US Dollar eyes on FOMC, Payrolls

After a positive, albeit brief, start of the week, the index stays within a tight range around the 99.00 neighbourhood amidst a notorious absence of catalysts for a significant move in either direction.

In fact, disappointing releases from the PCE and the relevant ISM Manufacturing for the month of April have collaborated with the buck’s downside on Monday, keeping the sentiment depressed for the time being.

However, the upcoming FOMC meeting (Wednesday) and April’s Payrolls figures due on Friday beg some caution from market participants. Market consensus expects the economy to have added 180K jobs during last month, while the Fed is seen delivering a somewhat dovish message.

According to CME Group’s FedWatch tool, the probability of a rate hike at tomorrow’s meeting stays just below 5% and it climbs to levels above 67% for the June meeting.

US Dollar relevant levels

The index is losing 0.03% at 98.95 and a break below 98.58 (low Apr.28) would open the door to 98.56 (2017 low Apr.25) and then 95.91 (low Nov.9 2016). On the upside, the next hurdle aligns at 99.06 (200-day sma) seconded by 99.21 (high Apr.27) and finally 99.24 (high Apr.24).