- DXY now moves higher and approaches the 92.70 level.
- US flash trade balance showed the deficit widened to $91.2 billion.
- Investors’ attention remains on the FOMC event later on Wednesday.
The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main competitors, accelerates gains to the area above 92.60 on Wednesday.
US Dollar Index bid ahead of FOMC
The index now trades on a firmer note and manages well to reclaim further ground near 92.70 as the FOMC gathering looms closer.
Collaborating with the upside momentum in the dollar, yields of the US 10-year benchmark manage to surpass the 1.26% level following recent lows, although the upside stays so far capped by the 1.30% hurdle.
In the US calendar, advanced Goods Trade Balance figures showed the trade deficit widened to $91.21 billion during June. Earlier MBA’s Mortgage Applications increased 5.7% on the week finished on July 23.
Later, all the attention will be on the FOMC event, where market participants are expected to closely follow any hint of the timing of the QE tapering, inflation prospects and potential earlier-than-anticipated interest rate hikes.
US Dollar Index relevant levels
Now, the index is gaining 0.20% at 92.65 and a break above 93.19 (monthly high Jul.21) would open the door to 93.43 (2021 high Mar.21) and finally 94.00 (round level). On the other hand, the next down barrier comes in at 92.31 (weekly low Jul.27) followed by 92.00 (monthly low Jul.6) and then 91.51 (weekly low Jun.23).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.