US Dollar Index keeps lows around 84.50

FXstreet.com (Edinburgh) - The greenback, in terms of the US Dollar Index, keeps the lower end of today’s range so far, waiting for the key FOMC minutes and the subsequent speech by Chairman Bernanke.

DXY in 3-year highs

It seems the USD rally has faltered around 84.60 and beyond in the last sessions, keeping multi-year peaks ahead of the big event this evening, as Fed’s Bernanke will give a speech in Boston just after the closing bell in Wall St. “The FOMC minutes are likely to be seen as hawkish insofar as the broad exit strategy was discussed and Bernanke's press conference afterwards seemed to lay out a rough time frame. It was in subsequent remarks that officials tried to clarify the signal and reiterate that reduced purchases is not the same as tightening”, assessed BBH Global Currency Strategy Team.

DXY levels to watch

The index is now retreating 0.19% at 84.47. The initial support aligns at 84.05 followed by 83.70 and finally 83.50. On the flip side, a breakout of 84.70 would bring 85.00 ahead of 85.40.

EUR/GBP testing the 0.8600 barrier

The EUR/GBP foreign exchange rate is now retesting the 0.8600 barrier Wednesday, trading in a relatively subdued consolidation during US trading thus far.
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