FXStreet (Edinburgh) – The greenback, in terms of the USD Index, is now gathering further traction, pushing higher to test session highs in the 96.90 area.
USD Index shrugs off data, focuses on FOMC
The greenback has left behind the poor results from US Pending Home Sales for the month of June (1.8% MoM act.), concentrating instead in the upcoming FOMC meeting.
Prior surveys expect the Committee to show a hawkish tone in the statement, as there is no press conference, dots plot or economic projections scheduled today. Market participants will scrutinize the wording looking for clues regarding the Fed’s lift-off, with September still ‘on the table’ although a rate hike in December appears more likely.
USD Index relevant levels
As of writing the index is up 0.11% at 96.87 and a breakout of 96.97 (high Jul.28) would aim for 97.62 (high Jul.24) and finally 98.46 (high Apr.21). On the flip side, the immediate support aligns at 96.29 (low Jul.27) ahead of 96.26 (low Jul.14) and then 95.63 (low Jul.13).
(Market News Provided by FXstreet)