US Dollar Rejected from 95.50, Back to 95.30
The dollar’s upside remains well and sound today, although the US Dollar Index seems to have met quite a strong resistance around 95.50.
US Dollar extends the rally post-FOMC
The greenback is advancing for the third week in a row, recovering the 95.00 mark and beyond after yesterday’s FOMC minutes have put back a June rate hike on the table. According to CME Group’s FedWatch, the probability of a move by the Fed next month has climbed to nearly 35% (from 4% on Monday).
Data wise in the US docket, the key Philly Fed Manufacturing index has missed consensus at -1.8 for the current month, while Initial Claims have come in at 278K vs. 275K forecasted and 294K previous. Ahead in the session, the speech by NY Fed W.Dudley is only due.
US Dollar relevant levels
The index is gaining 0.28% at 95.34 and a breakout of 96.34 (100-day sma) would target 96.42 (high Mar.28) en route to 96.69 (200-day sma). On the other hand, the initial support aligns at 94.12 (20-day sma) followed by 91.89 (2016 low May 3) and finally 91.50 (low Jan.15 2015).