US Dollar challenges lows near 99.40

The greenback, when tracked by the US Dollar Index, is losing ground across the board on Thursday, now testing recent multi-week lows in the 99.40 area.

US Dollar weaker post-FOMC

The index faded yesterday’s eventually unsuccessful attempt too retake the psychological 100.00 handle, deflating to the current area near 99.40, levels last seen back in early November.

The FOMC meeting on Wednesday left no room for surprises, leaving the target rate of the Fed Funds unchanged while the statement showed no major changes. We have to assume then that uncertainty around ‘Trumponomics’ remains intact as well as the Committee’s forecast for three rate hikes this year.

Data as of late continued to reinforce the solid health of the US economy, although further clues regarding the timing and/or updated projections of the rates’ path should come from Fed speakers and the minutes in the upcoming weeks.

Data wise in the US, the usual report on the labour market is due along with Q4’s Non-farm Productivity and the Economic Optimism index measured by IBD/TIPP.

US Dollar relevant levels

The index is losing 0.24% at 99.45 facing the immediate support at 98.92 (61.8% Fibo of the Nov-Jan. up move) followed by 96.94 (low Nov.4) and then 95.91 (low Nov.9). On the other hand, a break above 100.06 (high Feb.1) would open the door to 100.42 (high Jan.31) and finally 101.02 (high Jan.30).