DXY falls to test daily lows after FOMC minutes

The US dollar weakened after the release of the FOMC minutes. The Dollar Index dropped to 92.74 but remained above daily lows. 

The minutes showed that many officials saw another rate hike warranted this year and at the same time, many of them expressed worries about low inflation being not transitory, in line with today’s comments from Chicago Fed President Evans. The outlook points toward another rate hike in December but uncertainty starts to grow about what could happen next year, particularly if inflation remains weak. 

US bond yields moved modestly to the downside, still unable to reached fresh lows, driving the greenback lower. 

Technical levels 

The immediate support in the DXY is seen at the daily low of 92.70/75, followed by 92.45 (Sep 20 high) and 92.30 (Sep 26 low). To the upside, resistance could be seen at 92.90 (American session high) 93.15 (daily high) and 93.55 (Oct 9 high).