US Dollar drops further, near 92.80 ahead of FOMC

The US Dollar Index – which tracks the buck vs. its main rival currencies – is gathering further downside traction and is now printing fresh lows in the 92.80 area.

US Dollar weaker on yields, looks to FOMC

The index is now accelerating the weekly pullback after breaking below the critical support at 93.00 the figure, printing at the same time fresh 2-week lows.

The down move stays in tandem with the ongoing leg lower in yields of the key 10-year reference, which is trading in the area of daily lows in the 2.33% neighbourhood.

Further news around the buck saw Chicago Fed C.Evans saying that inflation pressure should pick up as long as the labour market remains strong, while he also stressed that the economy has handled Fed rate hikes so far.

Later in the US docket, the FOMC will publish its minutes from the September meeting, where investors will look for further clues on the balance sheet reduction and the Committee’s view on the performance of the economy amidst laggard inflation.

US Dollar relevant levels

As of writing the index is losing 0.25% at 92.86 facing the initial support at 92.73 (10-week sma) seconded by 91.53 (low Sep.20) and then 91.01 (2017 low Sep.4). On the upside, a breakout of 94.03 (23.6% Fibo of the 2017 drop) would open the door to 94.27 (high Oct.6) and finally 94.43 (100-day sma).