- The index remains on the defensive around 90.00 ahead of FOMC.
- US 10-year yields keep highs in the 2.90%-2.91%.
- Federal Reserve meeting next on tap. Focus on ‘dots plot.
The US Dollar Index – which gauges the buck vs. a basket of its main competitors – remains entrenched into the negative territory today although it manages well to keep business at/above the critical 90.00 milestone.
US Dollar looks to FOMC for direction
After failing once again to advance beyond the 90.40/50 band on a sustainable fashion, the index sparked a correction lower which has found strong support in the 90.00 neighbourhood for the time being.
The buck will be in the limelight later in the session, as global markets will closely follow the developments from the FOMC meeting.
It is worth recalling that market participants see the Federal Reserve hiking the Fed Funds rate by 25 bp, although the debate will gyrate around the revised ‘dots plot’ and the updated forecast for the US economy.
On the US docket, Existing Home Sales surprised to the upside today, expanding more than expected at 3.0% during last month, or 5.54 million units.
US Dollar relevant levels
As of writing the index is losing 0.39% at 90.06 facing the next support at 89.76 (low Mar.19) seconded by 89.56 (low Mar.14) and then 89.41 (low Mar.7). On the flip side, a break above 90.44 (high Mar.20) would open the door to 90.57 (high Feb.8) and finally 90.93 (high Mar.1).
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