Dollar Index Stays in Range, FOMC Up Next
Arslan Butt • 1 min read
There was a little change in the US dollar on Wednesday in Asia but on the other side, the British pound was boosted after UK Prime Minister Theresa May presented a “new” Brexit deal.
The US dollar index that follows the Greenback against a basket of other currencies was unchanged at 97.868.
At the start of the day, it received some support and was currently trading near a one-month high after Federal Reserve Chairman Jerome Powell indirectly argued against cutting interest rates in the near term due to the already-high level of corporate debt.
On the technical side, the dollar index is trading right below an immediate resistance level of 98.25. While the immediate support stays at 97.60 and 96. Fed isn’t expected to release hawkish remarks, especially in the trade war scenario. Which is why the market is pricing in a dovish FOMC today.
Anyhow, it will be really interesting to trade the hawkish FOMC tone as it hasn’t been priced in so far and may cause a bullish breakout in the dollar. Over 98.25, the next target can be 98.75.