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  • DXY stays depressed near session lows in the 93.60/50 band.
  • Trump postponed stimulus talks after the November elections.
  • The Federal Reserve will release its minutes of the September meeting.

The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main competitors, remains on the defensive near daily lows in the mid-93.00s.

US Dollar Index now focuses on FOMC

The index keeps the inconclusive price action so far this week and fades further Tuesday’s moderate advance.

The dollar gives away part of the recent gains as market participants continue to digest Tuesday’s news saying that President Trump left any debate around extra stimulus for a future time, most likely after the November elections.

Nothing relevant data wise in the US calendar, with weekly Mortgage Applications by MBA expanding 4.6%. Later, the EIA will report on the weekly crude oil supplies ahead of the publication of the FOMC Minutes of the September event.

What to look for around USD

The index appears to be moving into a consolidative phase, always below the key 94.00 barrier. Occasional bullish attempts in DXY, however, are (still) seen as temporary, as the underlying sentiment towards the greenback remains cautious-to-bearish. This view is reinforced by the “lower for longer” stance from the Federal Reserve, hopes of a strong recovery in the global economy, the negative position in the speculative community and political uncertainty ahead of the November elections.

US Dollar Index relevant levels

At the moment, the index is losing 0.23% at 93.63 and faces the next contention at 93.34 (monthly low Oct.5) followed by 92.70 (weekly low Sep.10) and then 91.92 (23.6% Fibo of the 2017-2018 drop). On the other hand, a break above 94.20 (38.2% Fibo retracement of the 2017-2018 drop) would aim for 94.74 (monthly high Sep.25) and finally 95.05 (100-day SMA).