- The index manages to keep business above the 95.00 handle.
- Yields of the US 10-year note extend the sideline theme near 3.17%.
- US housing sector data, FOMC minutes next of relevance in the docket.
The greenback, gauged by the US Dollar Index (DXY), clings to its daily gains above the 95.00 ahead of the publication of the FOMC minutes later in the day.
US Dollar Index looks to data, FOMC
The index is so far adding to yesterday’s small gains above 95.00 the figure on Wednesday amidst a softer tone in the risk-associated complex.
The markets, however, remain cautious and stay vigilant on developments in Italy and the Brexit negotiations, particularly in light of the imminent EU Leaders Summit starting on Thursday.
In addition, geopolitics are back to the fore following the murder of Washington Post’s journalist J.Khashoggi in Turkey earlier in the month, which involves that country, Saudi Arabia and the US.
Moving forward, US housing data is next on tap seconded by the weekly report on US crude oil supplies by the EIA and the publication of the FOMC minutes.
US Dollar Index relevant levels
As of writing the index is gaining 0.14% at 95.21 and a breakout of 95.39 (10-day SMA) would target 96.16 (high Oct.9) en route to 96.98 (2018 high Aug.13). On the other hand, immediate support is located at 95.03 (21-day SMA) followed by 94.79 (low Oct.12) and finally 94.20 (38.2% Fibo of the 2017-2018 drop).
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