US Dollar advances further, flirts with 94.50

The US Dollar Index, which measures the buck vs. its main competitors, is prolonging its upside to the mid-94.00s early in the NA session.

US Dollar recovers from FOMC

Market participants seem to have already adjusted to the recent dovish FOMC minutes (Wednesday), which pointed to a confirmation of the Fed’s ‘pause mode’ prior to another rate hike.

USD is deriving support from recent comments by FOMC’s W.Dudley and J.Williams, both stressing that a rate hike at the September meeting remains ‘on the table’, while Dallas Fed President R.Kaplan argued that the normalization of monetary policy remains cramped by low rates.

Looking ahead, the next relevant event in the US calendar will be Monday’s New Home Sales and the advance print of August’s Manufacturing PMI by Markit.

US Dollar relevant levels

The index is gaining 0.41% at 94.55 and a surpass of 94.78 (61.8% Fibo of July-August drop) would open the door to 95.11 (100-day sma) and finally 96.50 (high Aug.5). On the flip side, the immediate support lines up at 94.05 (low Aug.18) followed by 93.03 (low Jun.23) and then 91.88 (2016 low May 3).