US Dollar losing the grip around 92.30

Tracked by the US Dollar Index, the greenback is receding from recent tops around 92.50 to the current 92.35/30 band.

US Dollar bid after hawkish FOMC

The index quickly climbed to the mid-92.00s in response to an unexpected hawkish tone from the FOMC at its meeting on Wednesday.

In line with the June’s statement, the Committee left unchanged its rate path for the current year and 2018 (‘dots plot’), while it announced the unwind of the balance sheet in October, starting with $6 billion in Treasuries and $4 billion in MBS each month.

Inflation-wise, Chair Yellen reiterated the recent slowdown in consumer prices is seen as transitory, expecting them to pick up pace towards the Fed’s 2% target in the medium term.

On the US data front today, weekly initial claims are due later in the session followed by the manufacturing gauge from the Philly Fed.

US Dollar relevant levels

As of writing the index is retreating 0.13% at 92.27 and a break below 92.06 (10-day sma) would open the door to 91.61 (low Sep.20) and finally 91.01 (2017 low Sep.8) On the upside, the initial hurdle aligns at 92.69 (high Sep.20) followed by 93.35 (55-day sma) and then 94.03 (23.6% Fibo of the 2017 drop).