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  • The index keeps the upbeat tone near daily highs around 94.60.
  • Yields of the US 10-year note rebound from lows around 3.03%.
  • Chief Powell is due to speak later. Q2 GDP figures coming up next.

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main competitors, is posting moderate gains in the 94.50/60 band following yesterday’s FOMC event.

US Dollar Index looks to data, Powell

The index moved higher after a short-lived knee jerk following the hawkish bias from the Federal Reserve at its meeting on Wednesday, where it raised the Fed Funds rates to 2.00%-2.25%, in line with the broad consensus.

As markets continue to digest the Fed’s move on rates and the updated ‘dots plot’ and economic projections, today’s headlines from Italy regarding the national budget have been weighing on the sentiment surrounding the risk-associated complex, thus keeping EUR/USD under heavy pressure.

Looking ahead, another estimate of Q2 GDP figures is due along with the usual weekly report on the labour market, Durable Goods Orders, Pending Home Sales and the speech by Chief Powell.

US Dollar Index relevant levels

As of writing the index is gaining 0.25% at 94.53 facing the next hurdle at 94.74 (21-day SMA) seconded by 95.00 (high Sep.14) and finally 95.03 (55-day SMA). On the downside, a breach of 93.81 (low Sep.21) would aim for 93.71 (monthly low Jul.9) and then 93.19 (monthly low Jun.14).