US Dollar trims loses, 95.00 on sight?
By FXStreet FXStreet (Edinburgh) – The greenback, in terms of the US Dollar Index, continues to extend its recovery from session troughs in the 94.50 region, currently testing the vicinity of 94.80.
US Dollar still suffers the dovish FOMC
The renewed offered tone around the dollar has gained further traction as of late, mainly in response to the recent FOMC minutes. At the same time, market expectations of a potential Fed’s lift-off by year-end keep losing ground in favour of a rate hike in January or March 2016, adding further downside pressure to the greenback.
In the data space, NFIB’s Business Optimism index came in above estimates at 96.1 during September, ticking higher from August’s 95.9.
In addition, Fed’s Bullard has argued that the ‘lift-off is appropriate despite challenges’.
US Dollar significant levels
As of writing the US Dollar Index is losing 0.07% at 94.82 facing the next support at 94.06 (low Sep.24) followed by 92.59 (low post-PBoC move Aug.24) and finally 90.00 (psychological level). On the upside, a break above 95.46 (Fibo 50% of 98.40-92.52) would open the door to 96.05 (200-day sma) and then 96.34 (downtrend from August tops).
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Source:: FX Street
