US Dollar up smalls near 98.80, FOMC on sight

The US Dollar Index – which tracks the greenback vs. its main competitors – is trading almost unchanged on Wednesday, hovering over the 98.80/85 band ahead of key US docket.

US Dollar attention to FOMC, data

The index is so far reverting the bearish note prevailing during the first half of the week, meandering the sub-99.00 area although finding decent support in the 99.75/70 band for the time being.

In the meantime, DXY stays under pressure around the critical 12-month support/resistance line amidst the absence of a clear direction and with market participants looking to the FOMC meeting as a potential catalyst in the very near term.

Market consensus seems to lean towards a hawkish tilt from the Committee at today’s meeting, focusing on the strength of the labor market and the potential timing of the reduction of the Fed’s balance sheet.

Further data will see the ADP report (180K exp.) and the ISM Non-manufacturing (55.8 exp.)

US Dollar relevant levels

The index is gaining 0.10% at 98.88 facing the next hurdle at 98.97 (12-month resistance line) ahead of 99.07 (200-day sma) and finally 99.21 (high Apr.27). On the flip side, a break below 98.58 (low Apr.28) would open the door to 98.56 (2017 low Apr.25) and then 95.91 (low Nov.9 2016).