US Dollar off highs, keeps 99.00 ahead of data

The US Dollar Index (DXY) – which measures the buck vs. a basket of its main rivals – is up smalls during the second half of the week, managing well to keep the trade above the 99.00 handle for the time being.

US Dollar offered post-FOMC, looks to data

The index derived initial support from the FOMC upbeat tone on Wednesday, although the optimism fizzled out during the Asian session somewhat.

As expected, the Committee left unchanged the Fed Funds target at 0.75%-1.00%, while it noted that the tepid Q1 GDP is expected to be transitory. In the same line, the Fed reiterated the economy is seen expanding at a moderate pace with a strong labour market.

Later in the session, US Trade Balance figure is due along with the weekly report on US labour market and March’s Factory Orders.

US Dollar relevant levels

The index is gaining 0.02% at 99.28 facing the next hurdle at 99.59 (38.2% Fibo of the April drop) ahead of 99.69 (20-day sma) and finally 99.94 (high Apr.21). On the flip side, a break below 99.08 (200-day sma) would open the door to 99.00 (12-month support line) and then 98.56 (2017 low Apr.25).