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  • The index trades within a tight range between 94.40 and 94.20.
  • Yields of the US 10-year reference hovering over 3.10%.
  • Consumer Confidence tracked by the CB next of relevance.

The greenback, in terms of the US Dollar Index (DXY), is extending the sideline theme amidst low volatility and rising cautiousness ahead of the FOMC meeting on Wednesday.

US Dollar Index looks to data, Fed

The index is trading without a clear direction during the first half of the week amidst rising US yields, alleviated concerns in the US-China trade front and some political effervescence in the US political arena.

In fact, after bottoming out near 93.80 in past sessions, the index regained the 94.00 handle and above although gains seems limited near the 94.40 area.

In the data universe, the Conference Board’s gauge of consumer confidence will be the salient release today, while the key 2-day FOMC meeting also kicks in later today. Regarding the latter, the probability of a rate hike tomorrow is around 94%, according to Fed Funds futures prices from CME Group.

US Dollar Index relevant levels

As of writing the index is losing 0.05% at 94.22 facing the next support at 93.81 (low Sep.21) followed by 93.71 (monthly low Jul.9) and then 93.19 (monthly low Jun.14). On the other hand, a break above 94.46 (10-day SMA) would aim for 95.00 (high Sep.14) and finally 95.04 (55-day SMA).