US Dollar inching higher near 94.65/70, FOMC, ISM eyed
- USD remains under pressure ahead of FOMC.
- Cautiousness prevails ahead of Trump’s decision on Fed Chief.
- ISM, Payrolls on sight in the next trading hours.
The greenback, in terms of the US Dollar Index, keeps the marginal gains during the European morning while navigates the 94.60/70 band.
US Dollar attention to FOMC, US data
The index is advancing marginally on Wednesday after finding quite decent support in the mid-94.00s in past sessions, although a convincing resumption of the bullish bias appears elusive for the time being.
USD stays underpinned by the recent performance of yields in the US 10-year reference, which keep meandering in the upper end of the range near the 2.40% handle.
In addition, the buck stays vigilant on the imminent decision by President Trump on the next Fed Chairman, where current FOMC governor and permanent voter Jerome Powell appears as the front-runner vs. the more hawkish candidate John Taylor. Trump is expected to speak on the matter tomorrow.
Looking ahead, the ISM manufacturing is next on tap ahead of the FOMC meeting, with consensus seeing the Fed refraining from acting on rates.
US Dollar relevant levels
As of writing the index is gaining 0.08% at 94.64 facing the next up barrier at 95.15 (high Oct.27) followed by 95.90 (38.2% Fibo of the 2017 drop) and then 96.79 (200-day sma). On the other hand, a breakdown of 94.27 (high Oct.6) would expose 94.03 (23.6% Fibo of the 2017 drop) and finally 93.48 (low Oct.26).