After a failed attempt to stay above the rate of 92 Monday, the Index of us Dollar is posting modest losses on Tuesday as investors are preparing for the meeting of the Open Market Committee (FOMC) of the Federal Reserve that begins today and will end tomorrow in the second half of the american session tomorrow. At this time, the index operates at 91.58, down 0.25% on the day.
Earlier in the session, the macro data mixed of the united States led to a settlement of USD. However, it didn’t take long for the DXY to gain traction and move forward to a new peak of session in 91.83 due to the rising yields of the Treasury bonds in the united States. The reference to 10 years reached its highest level since the 17 of August to 2.245% on Tuesday and was last seen moving laterally around 2.24%.
Investors will be looking for clues in the statement of FOMC which could shape the expectations of another hike of 25 basis points before the end of the year. The Tool FedWatch of the CME Group it is showing that the markets are pinning a 56% probability of a hike in rates in December. A Fed of high risk could allow the dollar to make a stronger recovery in comparison with the support we have seen last week.
Technical levels to consider
The level 92 (psychological level) continues to be a significant threshold for the index. With a decisive push above this level, the index might point to 92.65 (maximum of 14 of September) and 93.30 (maximum of 31 of August). On the negative side, supports could be seen at 91.40 (minimum of 11 September), 91 (minimum 8 September) and 90 (psychological level).