US Dollar trims loses around 93.30, US data on sight

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index (DXY) stays within the negative ground so far today, although it has managed to bounce off lows near 93.20.

US Dollar offered post FOMC

The index quickly faded the bull run to the area of tops around the 94.00 handle in response to a dovish message from the FOMC minutes on Wednesday.

In fact, the Committee showed members remain divided regarding the prospects of inflation, while the majority agreed that the Fed should start to reduce its balance sheet ‘relatively soon’. Despite no precise dates were mentioned, markets expect some announcement in this regard at the September meeting.

Furthermore, the US political arena was back on the headlines yesterday following news that Trump’s CEO Business Council threatened to break up, adding extra downside pressure to the buck.

US money markets also took a hit following Wednesday’s events, with yields of the 10-year reference giving up gains and retreating towards the 2.22% handle, where it seems to have found some contention.

In the US data space today, the usual report on the labour market is due seconded by the Philly Fed manufacturing gauge, industrial production and capacity utilization.

In addition, Dallas Fed R.Kaplan (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish) are due to speak.

US Dollar relevant levels

The index is losing 0.09% at 93.33 and a break below 93.22 (low Aug.17) would aim for 92.83 (low Aug.11) and finally 92.39 (2017 low Aug.2). On the other hand, the initial up barrier aligns at 94.05 (high Aug.16) seconded by 94.11 (high Jul.26) and finally 95.10 (23.6% Fibo of the 2017 drop).

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.

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