US Dollar near 91.50 post-US data, FOMC meeting eyed

The greenback – in terms of the US Dollar Index – remain in the negative territory so far today, although it managed to leave the area of daily lows in the 91.40/35 band.

US Dollar now looks to FOMC

The selling mood around the buck remains intact during the first half of the week, as market participants stay vigilant on the FOMC gathering due later today. According to CME Group’s FedWatch tool, today’s outcome leans almost entirely towards an ‘on hold’ stance from the Committee.

However, investors will closely follow today’s statement looking for any clues regarding a potential third rate hike at some point in Q4 and the probable timing of the Fed’s balance sheet reduction.

In the data space, existing home sales contracted 1.7% in August to 5.35 million units, coming in below initial expectations.

US Dollar relevant levels

As of writing the index is retreating 0.11% at 91.52 and a breakdown of 91.01 (2017 low Sep.8) would open the door to 89.65 (low Dec.25 2014) and finally 87.63 (low Dec.16 2014) On the upside, the initial hurdle aligns at 91.90 (10-da sma) followed by 92.20 (high Sep.18) and then 92.29 (21-day sma).