US Dollar eases some ground to 94.50
- DXY stays positive within a narrow range.
- Greenback underpinned by data.
- FOMC meeting, Trump’s decision on Fed Chief eyed.
Measured by the US Dollar Index, the greenback keeps the daily gains in the mod-94.00s despite choppy performance from US yields.
US Dollar supported by US results, looks to FOMC
The index managed to leave behind the initial weakness and is extending the consolidative pattern in the positive territory, always within a narrow range in the 94.60/50 area.
USD gained extra buying interest after the Chicago PMI rose above estimates to 66.2 for the current month, while the Conference Board’s consumer confidence climbed to 125.9 in the same period, also bettering prior surveys.
Further data saw home prices tracked by the S&P/Case-Shiller index rising at a non-seasonally-adjusted 5.9% YoY.
Ahead in the week, the buck should stay under pressure in light of the FOMC meeting tomorrow and October’s non-farm payrolls due on Friday.
Furthermore, President Trump is expected to announce the successor of Chief Yellen at some point on Thursday, with FOMC’s J.Powell (dovish) now the front-runner ahead of hawkish candidate J.Taylor.
US Dollar relevant levels
As of writing the index is gaining 0.01% at 94.51 facing the next up barrier at 95.15 (high Oct.27) followed by 95.90 (38.2% Fibo of the 2017 drop) and then 96.81 (200-day sma). On the other hand, a breakdown of 94.27 (high Oct.6) would expose 94.03 (23.6% Fibo of the 2017 drop) and finally 93.48 (low Oct.26).