US Dollar Index advances to 3-day highs above 96.50 on FOMC's rate statement
|- FOMC leaves policy rate unchanged as expected.
- The rate statement doesn't reveal anything that could force the Fed to pause in December.
The US Dollar Index, which measures the greenback's value against a basket of six major currencies, rose to a fresh 3-day high of 96.58 with the initial reaction to the FOMC's rate statement. As of writing, the index was up 0.37% on the day at 96.52.
As expected, the FOMC announced that it decided to keep its benchmark interest rate unchanged at the range of 2% - 2.25%. "Information received since the Federal Open Market Committee met in September indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate," the statement read.
Although the CME Group FedWatch Tool's December rate hike odd edged lower to 71.4% from 74.6%, the fact that the statement didn't mention the recent volatility seen in the equity markets or the risks related to the Trump administration's trade policy, showed that the Fed is comfortable with another rate hike in December.
Technical levels to consider
The initial resistance for the index could be seen at 96.70 (Nov. 5 high) ahead of 97.20 (Oct. 31 high) and 97.90 (Jun. 20, 2017, high). On the downside, supports are located at 96.15 (20-DMA), 95.70 (Nov. 7 low) and 95.15 (50-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.