US Dollar challenging 100.00 ahead of US data, G20

The greenback – measured by the US Dollar Index (DXY) – remains on the defensive so far today, currently putting the 100.00 support to the test.

US Dollar offered post-FOMC, looks to data and G20

The index is down for the third straight session at the end of the week, navigating in the area of 5-week lows in the 100.00 neighbourhood amidst the persistent bearishness following the FOMC meeting on Wednesday. In fact, it is the first time since mid-January that DXY is losing ground for three consecutive sessions.

The generalized disappointment after the dovish 25 bp rate hike by the Federal Reserve earlier in the week left the buck looking into the abyss, opening the door for a potential visit to 2017 lows in the 99.20 region seen in early February.

US data today include Industrial and Manufacturing Production, Capacity Utilization and the advanced reading of Consumer Sentiment gauged by the Reuters/Michigan Index. Looking further ahead, the 2-day G20 meeting should have populist trends, protectionism and currency manipulation on top of the agenda.

US Dollar relevant levels

The index is losing 0.09% at 100.00 facing the next support at 99.19 (2017 low Feb.2) followed by 96.94 (low Nov.4 2016) and finally 95.91 (low Nov.9 2016). On the flip side, a breakout of 100.58 (high Mar.16) would open the door to 100.88 (100-day sma) and then 101.04 (55-day sma).