US dollar index erases gains after Fed’s minutes

Matías Salord FXStreet

The US dollar fell across the board after the release of the FOMC minutes from the latest meeting, when the Fed, as expected, kept interest rates unchanged. The central bank left the doors open to a rate hike but market odds of a March rate hike fell modestly.

FOMC Minutes: Policymakers thought a rate hike "might be"appropriate "fairly soon"

The US Dollar index, which gauges the US dollar against its main competitors, was hovering around 101.50 before the minutes, and then tumbled to 101.15 hitting a fresh daily low. The index remains at the lows, far from the 101.70 level (6-day high) it reached earlier.

The greenback weakened amid a recovery in US bonds. The 10-year yield fell from 2.45% to 2.41%. Equity prices in Wall Street suffer no relevant impact from the minutes. The Dow Jones was up marginally 0.08% while the S&P 500 was falling 0.16%.

DXY levels

To the downside, support levels might lie at 101.15 (daily low), 101.00 (Feb high) and 100.75 (Feb 20 low). On the upside, resistance could now be seen at 101.40 (Feb 14 high / 20-hour moving average) and 101.70/75 (Feb 15 & 22 high).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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