The greenback, tracked by the US Dollar Index, is extending its upbeat momentum today, now posting fresh highs above the 97.00 handle.
US Dollar attention to the FOMC
USD has been advancing since Monday, recovering ground after last week’s deep sell-off towards the 96.00 mark. A better tone in the risk appetite trends plus auspicious releases in the US docket has lent support to the index, allowing the rebound from recent lows.
Today’s key US CPI figures and Housing Starts have surprised markets to the upside, bolstering further the upbeat sentiment ahead of the FOMC meeting due later in the NA session.
Market expectations remains biased towards a no-hike today, although the expected hawkish tone could be supportive of a rate hike at the April or June meeting.
US Dollar relevant levels
The index is up 0.37% at 97.02 facing the next hurdle at 97.61 (50% Fibo of 99.95-95.28) followed by 97.85 (55-day sma) and finally 98.42 (post-ECB high Mar.10). On the other hand, a breach of 96.38 (23.6% Fibo of 99.95-95.28) would target 95.28 (2016 low Feb.11) en route to 93.83 (monthly low Oct.15 2015).
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