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  • The index gives away some ground, returns to 96.15/10.
  • The Federal Reserve is expected to keep rates on hold today.
  • US Initial Claims rose at a weekly 214K, in line with estimates.

After a brief test of daily peaks in the 96.20 area, the US Dollar Index (DXY) is now coming under some selling pressure and is back around the 96.15/10 band.

US Dollar Index looks to FOMC

The index continues to exchange gains with losses on Thursday amidst the broad-based low volatility in the global markets.

Market participants appear to have already digested the recent US mid-term elections the immediate focus is now back on the Federal Reserve. Today’s meeting is expected to yield no relevant announcement, leaving all the excitement for the December meeting, where a move on rates is forecasted.

In the meantime, the buck should look to the omnipresent US-China trade jitters for direction along with volatile headlines coming from the EU-UK Brexit talks (or lack of them).

Earlier in the day, Initial Claims rose 214K from the week earlier, taking the 4-Week Average to 213.75K from 214.00K.

US Dollar Index relevant levels

As of writing the index is losing 0.06% at 96.14 facing the next support at 95.68 (low Nov.7) followed by 95.47 (low Oct.20) and finally 95.39 (55-day SMA). On the flip side, a break below 96.49 (10-day SMA) would open the door to 96.68 (high Nov.5) and then 97.19 (2018 high Oct.31).