US Dollar approaches 94.00 ahead of FOMC

The index trades in weekly peaks near the 94.00 handle.
US 10-year yields drop to lows in the 2.96% neighbourhood.
US Producer Prices next on tap ahead of FOMC meeting.

Pablo Piovano FXStreet

The greenback, measured by the US Dollar Index (DXY), is trading on the positive footing on Wednesday and targets the critical 94.00 milestone.

US Dollar looks to data, FOMC

The index is prolonging the upbeat momentum so far this week, eyeing a test of the critical barrier at 94.00 the figure amidst a renewed sentiment towards the greenback.

The ongoing uptick has been on the back of choppy activity in yields of the key US 10-year reference, which are coming down to test the 2.96% level after advancing to weekly highs around 2.98% earlier in the week.

Later in the NA session, Producer Prices for the month of May are due ahead of the key FOMC meeting, where market participants have already anticipated a 25 bp rate hike. Additionally, the updated version of the ‘dots-plot’ will also be in centre stage.

US Dollar relevant levels

As of writing the index is up 0.05% at 93.88 facing the next up barrier at 94.00 (psychological level) followed by 94.32 (high Jun.4) and finally 94.45 (high May 31). On the other hand, a breakdown of 93.22 (low Jun.7) would aim for 92.80 (38.2% Fibo of the April-June up move) and then 92.24 (low May 13).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD loses ground below 1.1850 ahead of FOMC Minutes

The EUR/USD pair loses traction near 1.1840 during the early European session on Wednesday, pressured by renewed US Dollar demand. Traders brace for the Federal Open Market Committee Minutes for signals on future rate cuts, which will be released later on Wednesday.

When is the UK CPI data and how could it affect GBP/USD?

The United Kingdom Consumer Price Index data for January is scheduled to be published today at 07:00 GMT. GBP/USD trades slightly lower at around 1.3556 as of writing. The 20-period Exponential Moving Average trends lower at 1.3593 and continues to cap rebounds. Price holds beneath this gauge, maintaining a short-term bearish bias.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.