US Dollar under pressure near 100.30, FOMC still weighs

The greenback – gauged by the US Dollar Index – is struggling for direction in the 100.35/30 band following the closing bell in the Asian session.

US Dollar hurt by FOMC, looks to data

The index suffered the dovish hike from the FOMC at yesterday’s meeting, where the ‘dots plot’ were not hawkish enough to trigger a more sustainable leg higher in the buck.

Chief Yellen also disappointed USD-bulls despite emphasizing the robust pace of the labour market and showing confidence that inflation figures will reach the Fed’s target in the medium term.

The Committee revised up its forecasts for economic growth and interest rates, although in the longer run things remained pretty much unchanged vs. expectations of some hawkish tweak.

DXY sold-off to fresh 5-week lows in the vicinity of 100.30 in the wake of Yellen’s press conference, leaving the door open for further downside as European markets get ready to open. In the same line, the yield of the 10-year reference shed 10 bp although still clings to the 2.50% for the time being.

In the US data space, Initial Claims, the Philly Fed index, JOLTs Job Openings, Housing Starts and Building Permits are all due.

US Dollar relevant levels

The index is losing 0.02% at 100.34 facing the next support at 100.28 (23.6% of the 2017 drop) followed by 100.00 (psychological level) and finally 99.19 (2017 low Feb.2). On the flip side, a breakout of 100.87 (100-day sma) would open the door to 101.09 (55-day sma) and then 101.66 (high Mar.14).