FXStreet (Edinburgh) – The US Dollar Index, which measures the greenback vs. its main rivals, has managed to bounce off session lows near 96.60 and regain the 96.80 area.

US Dollar all the attention to the FOMC

The dollar is trading on the back footing today, surrendering part of the recent advance to levels beyond the 97.00 mark ahead of the key FOMC meeting due later.

With a rate hike ruled out today, market participants will closely follow the statement looking for any clues on whether the Committee has changed its stance regarding a rate hike in December, which will be key for USD in the near term. Currently, the probabilities of a Fed’s lift-off in December remain near 35% vs. January’s 44% and March 59%.

US Dollar significant levels

As of writing the US Dollar Index is down 0.30% at 96.73 with the immediate support at 96.20 (200-day sma) followed by 95.66 (55-day sma) and finally 95.46 (50% Fibo of 98.40-92.52). On the upside, a surpass of 97.30 (high Oct.23) would expose 98.40 (monthly high Aug.7) and finally 99.00 (psychological level).

The US Dollar Index, which measures the greenback vs. its main rivals, has managed to bounce off session lows near 96.60 and regain the 96.80 area…

(Market News Provided by FXstreet)

By FXOpen