FXStreet (Edinburgh) – The greenback, measured by the US Dollar Index, has given away yesterday’s gains and is now challenging session lows in the 98.35/30 band.

US Dollar weaker, Fed looms

Bad day for the dollar, as it remains unable to extend the auspicious start of the week seen on Monday, snapping the positive momentum following another solid print from the US labour market on Friday.

In the US data space, NFIB’s Business Optimism index came in below estimates, while the Economic Optimism gauged by IBD/TIPP has surpassed consensus for the current month. Mixed results, albeit irrelevant, when all the market is thinking of now is the FOMC meeting next week.

US Dollar significant levels

As of writing the US Dollar Index is losing 0.27% at 98.48 with the next support at 97.60 (low post-ECB Dec.3) followed by 96.79 (200-day sma) and finally 95.18 (4-month uptrend). On the flip side, a break above 98.99 (23.6% Fibo of 93.84-100.58) would aim for 100.00 (psychological handle) and finally 100.58 (high Dec.3).

The greenback, measured by the US Dollar Index, has given away yesterday’s gains and is now challenging session lows in the 98.35/30 band…

(Market News Provided by FXstreet)

By FXOpen