FXStreet (Edinburgh) – The greenback, gauged by the US Dollar Index, has mostly faded the initial spike although it manages to keep gains above the 99.00 mark.

US Dollar firm ahead of FOMC

The greenback has surrendered part of today’s advance, being rejected once again from the 99.70/75 band following disappointing data from the US Services sector and Factory Orders. On the bright side, November’s trade deficit shrunk more than expected to $42.4 billion.

The dollar will remain under scrutiny nonetheless in light of the upcoming release of the FOMC minutes, with the broad consensus expecting the statement to come in on the hawkish side.

US Dollar significant levels

As of writing the US Dollar Index is up 0.07% at 99.46 facing the next up barrier at 100.00 (psychological level) and then 100.60 (2015 high Dec.3). On the flip side, a breach of 98.01 (38.2% Fibo of 93.82-100.60) would open the door to 97.15 (100-day sma) and finally 95.86 (5-month uptrend).

The US dollar, gauged by the US Dollar Index, has mostly faded the initial spike although it manages to keep gains above the 99.00 mark…

(Market News Provided by FXstreet)

By FXOpen