US Dollar losing the grip near 89.00, ISM eyed


  • USD fades post-FOMC spike.
  • Fed ready to hike rates in March.
  • ISM manufacturing next of relevance.

The greenback, in terms of the US Dollar Index, has given back initial gains recorded in the wake of the FOMC meeting and is now retreating towards the 89.00 neighbourhood.

US Dollar now looks to ISM

The index remains depressed and still unable to gather some credible traction in spite of the recent hawkish twist seen from the Federal Reserve at yesterday’s meeting.

In fact, in what was the latest meeting presided by Janet Yellen, the Committee now sees consumer prices advancing further throughout this year, while growth risks stay roughly balance for the time being. However, members now signalled that further rate hikes are warranted and market participants are now expecting three extra rate hikes this year at the March, June and December meetings.

The prospects of further tightening did nothing to curb the pessimism around the buck, which remains anchored around the 89.00 handle and now looks to the critical US ISM manufacturing for some direction, at least in the near term.

US Dollar relevant levels

As of writing the index is retreating 0.08% at 89.06 and a break below 88.81 (low Jan.31) would open the door to 88.42 (2018 low Jan.25) and finally 87.64 (low Dec.16 2014). On the flip side, the next up barrier lines up at 90.70 (high Jan.22) followed by 90.98 (high Jan.18) and then 92.64 (high Jan.9).

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD pressured in critical daily resistance ahead of ECB

EUR/USD is flat in the open this week at 1.1645 at daily resistance with the US dollar trying to hold up. Investors have taken profits since the dollar index hit a one-year high last week as they build expectations for sooner rate increases in other currencies.

EUR/USD News

GBP/USD: Buyers defends 1.3750 below 100-day SMA

GBP/USD edges higher on the first trading day of the week in the Asian trading hours. The pair faces strong resistance near 1.3850 below the bearish sloping line. MACD signals sideways momentum with the underlying neutral sentiment.

GBP/USD News

EUR/USD pressured in critical daily resistance ahead of ECB

EUR/USD is flat in the open this week at 1.1645 at daily resistance with the US dollar trying to hold up. Investors have taken profits since the dollar index hit a one-year high last week as they build expectations for sooner rate increases in other currencies.

EUR/USD News

SafeMoon price presents a buy opportunity before 35% gains

SafeMoon price coils up under a crucial resistance level at $0.00000239. A sudden burst in buying pressure that shatters this barrier can kick-start a 35% ascent. In some cases, SAFEMOON could pull back to $0.00000198 or $0.00000175 support floors.

Read more

Wall Street Week Ahead: Huge week of earnings ahead AAPL, MSFT, GOOGL, AMZN, FB

Equity markets remain elevated with more all-time highs on Thursday for the broader S&P 500 while the Dow registered new highs on Wednesday and Thursday. So far late into Friday's session, the markets are seeing some profit-taking to end a solid week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures