US Dollar retreats from highs ahead of FOMC

The US Dollar Index, which tracks the greenback vs. its main rivals, has returned to the 94/80/75 band after being rejected from the 95.00 neighbourhood.

US Dollar attention to FOMC minutes

The upside momentum around USD has probed to be well and sound today, with the dollar adding to yesterday’s gains although a break above the key barrier at 95.00 still remains baffling.

Recent positive results in the US docket – better than expected retail sales, consumer confidence, CPI figures, Industrial Production – have been supporting the upside, later reinforced by hawkish comments by (non voters) FOMC’s Williams, Kaplan and Lockhart.

Next of relevance for USD will be the FOMC minutes, where market participants will closely follow the Committee’s views regarding a potential rate hike by the Fed in the next months.

US Dollar relevant levels

The index is gaining 0.27% at 94.77 and a breakout of 95.21 (high Apr.14) would target 96.42 (high Mar.28) en route to 96.69 (200-day sma). On the other hand, the initial support aligns at 91.89 (2016 low May 3) followed by 91.50 (low Jan.15 2015) and finally 87.23 (low Nov.17 2014).