US Dollar pushes higher, retakes 100.00 ahead of FOMC

The US Dollar Index (DXY) – which tracks the buck vs. its main competitors – has recovered part of the shine lost on Tuesday and is now gyrating around the 100.00 handle.

US Dollar stronger ahead of Fed

The index is extending the bounce off yesterday’s lows in the 99.40 region, regaining the vicinity of the psychological level at 100.00 the figure.

Comments by President D.Trump on Tuesday plus Consumer Confidence and the Chicago PMI coming in below expectations have dragged USD to levels last seen in mid-November in the 99.50/40 band, although dip-buyers seem to have turned up around those levels, giving some oxygen to the buck and sustaining the ongoing rebound.

On the US data space today, January’s ADP report and the ISM Manufacturing have come in on the strong side, lending extra legs to the Dollar’s up move. On the less bright side, Markit’s Manufacturing PMI came in a tad lower at 55.00 during the same period.

Later in the NA session, the greenback will remain in centre stage in light of the COMC meeting, with consensus expecting the Committee to leave its monetary stance unchanged.

US Dollar relevant levels

The index is gaining 0.47% at 100.00 facing the next resistance at 100.50 (high Jan.31) ahead of 100.86 (20-day sma) and then 101.02 (high Jan.30). On the other hand, a breakdown of 99.40 (low Jan.31) would open the door to 98.92 (61.8% Fibo of the Nov-Jan. up move) and finally 96.94 (low Nov.4).