The US Dollar Index – which tracks the buck vs. its main rivals – has reverted the initial negative tone and is now trading back around the 93.80 area, or daily highs.
US Dollar attention to FOMC
The index is advancing for the third consecutive session so far today, always on the back of improved sentiment around the back, auspicious results from the US docket and a healthy rebound in US yields.
USD clinched fresh multi-day tops beyond the 94.00 handle on Tuesday in response to solid prints from US retail sales during July, surpassing initial estimates. Additionally, the regional manufacturing gauge tracked by the NY Empire State index has also come in well above expectations.
Further support for the buck came from the US money markets, where yields of the 10-year benchmark rose to highs just beyond 2.28%, although deflating a tad soon afterwards.
In the same line, NY Fed W.Dudley (permanent voter, hawkish) showed himself confident on Monday that the Fed could hike rates for the third time this year as long as data match forecasts, while he also added that the Fed should start reducing its balance sheet soon.
Later in the NA session, housing starts and building permits are next on tap, followed by the FOMC minutes.
US Dollar relevant levels
The index is gaining 0.03% at 93.78 and a break above 94.04 (high Aug.15) would open the door to 94.11 (high Jul.26) and fnally 95.10 (23.6% Fibo of the 2017 drop). On the flip side, the next support lines up at 93.44 (21-day sma) seconded by 92.83 (low Aug.11) and finally 92.39 (2017 low Aug.2).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends slide below 1.0300, touches new two-year low
EUR/USD stays under bearish pressure and trades at its lowest level since November 2022, below 1.0300 on Thursday. The US Dollar benefits from the risk-averse market atmosphere and the upbeat Jobless Claims data, causing the pair to stretch lower.
GBP/USD slumps to multi-month lows below 1.2400 on broad USD strength
Following an earlier recovery attempt, GBP/USD reversed its direction and declined to its weakest level in nearly eight months below 1.2400. The renewed US Dollar (USD) strength on worsening risk mood weighs on the pair as trading conditions normalize after the New Year break.
Gold benefits from risk aversion, climbs above $2,650
Gold gathers recovery momentum and trades at a two-week-high above $2,650 in the American session on Thursday. The precious metal benefits from the sour market mood and the pullback seen in the US Treasury bond yields.
These 5 altcoins are rallying ahead of $16 billion FTX creditor payout
FTX begins creditor payouts on January 3, in agreement with BitGo and Kraken, per an official announcement. Bonk, Fantom, Jupiter, Raydium and Solana are rallying on Thursday, before FTX repayment begins.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.