US Dollar in the red around 95.20, focus on FOMC

By FXStreet FXStreet (Edinburgh) – The US Dollar Index, which tracks the greenback vs. its main rivals, remains entrenched in the negative territory around 95.20.

US Dollar unmoved after US data

The greenback has practically ignored the auspicious results from the US labour market today, with Initial Claims coming in at 264K, bettering expectations. Another positive surprise came from Building Permits, surpassing estimates, while Housing Starts missed expectations after posting 1.126 million during August.

The Philly Fed manufacturing survey is up next, with consensus expecting the indicator at 6.0, down from July’s 8.3.

The FOMC meeting will be the main event today, with the chances of the Fed hiking rates substantially lower than some weeks ago, around 25-30%. According to strategists at TD Securities, “our base case is for the Fed to remain on hold but to sound hawkish. We think this will ultimately be USD positive and commodity-linked currencies will underperform”.

US Dollar levels to consider

At the moment the index is losing 0.29% at 95.13 facing the next support at 93.72 (low Aug.26) ahead of 93.25 (low Aug.25) and finally 92.59 (low Aug.24). On the flip side, a break above 95.61 (high Sep.16) would expose 96.53 (high Sep.4) ahead of 97.07 (high Aug.19).
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Source:: FX Street