US Dollar bounces off lows post-CPI, near 89.50 ahead of FOMC
- The index met decent support in daily lows around 89.40.
- USD picks up pace after CPI matched expectations in March.
- Next of relevance will be the publication of the FOMC minutes.
After bottoming out in the 89.40 region, or fresh 2-week lows, the greenback is now picking up pace and pushing the US Dollar Index to the 89.50/55 band.
US Dollar now looks to FOMC
Despite the ongoing rebound from fresh lows, the index remains well entrenched into the negative territory and stay on the way to close the first week with red figures after two consecutive advances.
The buck remains under pressure in light of heightened geopolitical concerns involving Syria and the US, relegating US-China trade conflict to a secondary role for the time being.
The index picked up some buying interest after US inflation figures tracked by the headline CPI rose at an annualized 2.4% and contracted 0.1% inter-month. In addition, CPI stripping food and energy costs rose 0.2% MoM and 2.1% on a year to march.
Later in the NA session, the greenback should stay under pressure in light of the release of the FOMC minutes.
US Dollar relevant levels
As of writing the index is losing 0.09% at 89.54 facing the next support at 89.40 (low Apr.11) seconded by 88.94 (low Mar.27) and then 88.25 (2018 low Feb.16). On the other hand, a breakout of 90.60 (high Apr.6) would open the door to 90.89 (38.2% Fibo of 95.15-88.25) and finally 90.93 (high Mar.1).